Karnataka - Bangalore   

Deshpande expresses concern over deficit

Staff Reporter

In thelegislature `Fiscal deficit will cross 3 per cent of GSDP in 2007-08'

Bangalore: The former Minister R.V. Deshpande on Thursday told Deputy Chief Minister B.S. Yediyurappa that he was ruining the State's finances with the fiscal deficit touching a high of Rs. 4,500 crore.

Participating in the debate on the Budget in the Legislative Assembly, Mr. Deshpande (Congress) said the fiscal deficit would cross three per cent of the Gross State Domestic Product (GSDP) in 2007-08 as against 2.77 per cent in 2006-07.

Taking Mr. Yediyurappa, who also holds the Finance portfolio, to task for not presenting the mandatory mid-term fiscal plan along with the Budget, Mr. Deshpande said the plan could have been prepared if the Deputy Chief Minister had reviewed the performance of each department. His failure to present the plan was a serious violation of the Karnataka Fiscal Responsibility Act, he maintained.

Referring to the falling revenue in some of the departments, Mr. Deshpande asked Mr. Yediyurappa to explain how he was going to make good the revenue lost because of the ban on arrack and lotteries and the increased expenditure on the loan waiver scheme for farmers.

Kumar Bangarappa (Congress), who termed it a political budget, suggested the construction of barrages across west-flowing rivers to store 47 tmcft of water. This would supply water for irrigation and drinking water needs of areas in the coastal belt from Mangalore to Karwar, he said.

The former Minister S.S. Patil wondered whether the waiver of crop loans would help farmers.

The scheme announced by Mr. Yediyurappa might benefit eight lakh farmers, but what about the other 60 lakh farmers, he asked.

K.N. Rajanna (Janata Dal-S) suggested that the various welfare schemes aimed at improving the conditions of Scheduled Castes and Scheduled Tribes people be evaluated to find out whether the funds set apart for them was being spent properly.

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