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Bengaluru, Mar 6: In the face of unprecedented economic difficulties, Chief Minister B S Yediyurappa has chosen to hike the prices of fuel and liquor to fund development in his 2020-21 Budget, which tries to offer something for everybody with the available resources.

Yediyurappa announced a 3% hike in the rate of tax on petrol and diesel. This will result in the prices of petrol going up by Rs 1.60 per litre and diesel by Rs 1.59 per litre. This is expected to fetch the government Rs 1,500 crore.

By hiking additional excise duty on Indian Made Liquor (IML) by 6%, the government hopes to mop up Rs 1,200 crore.

In essence, Yediyurappa, the finance minister, pointed fingers at the Centre for the state’s fiscal woes. He said Karnataka’s share in Central taxes has come down this fiscal by Rs 8,887 crore. Plus, Rs 3,000 crore GST compensation will also be reduced as collections from the GST cess are not on expected lines, he said in his Budget speech. 

“It has become difficult to reach the 2019-20 Budget targets due to these reasons. To manage this situation within the bounds of the Karnataka Fiscal Responsibility Act, it has become inevitable this year to cut down the expenditure of many departments,” he said.

Under the 15th Finance Commission, Karnataka will see a reduction of Rs 11,215 crore in the state’s share of central taxes in 2020-21, Yediyurappa said. He also pointed out that expenditure on salaries, pensions and loan interest payments had risen by Rs 10,000 crore. “Serious difficulties are being faced in resource mobilisation efforts of the state. The state never faced economic difficulties of this magnitude in the previous years,” he said.

But in an attempt to please all, Yediyurappa made announcements across sectors and communities. Instead of the usual department-wise announcements, the CM chose to divide the Budget into six sectors: agriculture & allied activities; welfare & inclusive growth; stimulating economic growth; Bengaluru development; culture, heritage & natural resources and administrative reforms & public service delivery.

Farmers will get additional incentives under PM-KISAN costing Rs 2,600 crore and a waiver of interest on loans they have borrowed from cooperative banks worth Rs 466 crore.

The CM has earmarked Rs 500 crore to start work on the Kalasa-Banduri canals under the Mahadayi project. Also, Yediyurappa has given Rs 1,500 crore to commission the Yettinahole drinking water project.

This project will cater to the districts of Hassan, Chikkamagaluru, Tumakuru, Bengaluru Rural, Ramanagara, Chikkaballapur and Kolar.

For Bengaluru, the CM has made an allocation of Rs 8,772 crore. This includes Rs 500 crore for the suburban rail project, an electric bike taxi project and bus priority lanes.

Significantly, Yediyurappa has not made any allocation to mutts. However, the government will spend Rs 100 crore on the Anubhava Mantapa at Basavakalyan, Rs 66 crore for a 100 ft Kempegowda statue in Bengaluru and Rs 20 crore on a 325 ft statue of Basavanna at the Murugha Mutt in Chitradurga.

The CM has given Rs 305 crore for the development of various communities — Christians (Rs 200 crore), Upparas (Rs 10 crore), Vishwakarma (Rs 25 crore), Ambigara Chaudaiah (Rs 50 crore), Arya Vysya (Rs 10 crore) and Kumbara (Rs 10 crore).

Also, nearly 22.5 lakh government employees and their dependents will get cashless treatment facility for surgical treatment procedures at an estimated annual cost of Rs 50 crore under the Jyothi Sanjini scheme, the CM said.

Bengaluru, Jan 31: Karnataka Chief Minister B S Yediyurappa on Friday got the green signal from the BJP central leadership for the much-awaited cabinet expansion in the state and he is mostly likely to induct 11 ministers. Yediyurappa said the date of swearing-in will be decided in a day or two, although he indicated that it would most likely be held on February 3.

Currently, there are 18 ministers, including the chief minister, in the cabinet that has a sanctioned strength of 34. Sixteen berths are vacant. "Many of our suggestions have been accepted by Home Minister Amit Shah and BJP national president J P Nadda. If there are differences, we will discuss in Bengaluru and finalise it," Yediyurappa told reporters after meeting Shah in the Parliament Complex here.

Except for one or two, most of the disqualified JDS-Congress MLAs who got re-elected in the bypolls on BJP tickets will be made ministers, he said, adding there won't be any additional deputy chief ministers. However, sources said, a total of 11 ministers would be inducted into the cabinet.

"We discussed yesterday and now also. Shah has agreed to almost everything," Yediyurappa said, adding he is returning back "happy" after getting the nod for the cabinet expansion. "I am going happy," he said.

Yediyurappa had been anxiously waiting for the party high command's approval to expand his ministry amid intense lobbying by the aspirants. Opposition parties have been critical of the BJP and Yediyurappa over the delay in the cabinet expansion, alleging he was weak and that his administration had collapsed.

Bengaluru, Jul 9: Alarmed over surging COVID-19 cases, the Karnataka government has decided to divide this tech city into containment zones to curb the spread of the pandemic, a state minister said on Thursday.

"The city will be divided into red, orange and yellow zones in commensurate with the number of Covid cases in them for containing the virus spread on war footing," Law and Parliamentary Affairs Minister J.C. Madhuswamy told reporters here.

Cabinet ministers representing assembly segments in the city will be in-charge of the zones to ensure the cases are curbed with strict enforcement of lockdown guidelines, especially wearing mask and maintaining social distancing by the people in the confinement areas.

"Chief Minister B.S. Yediyurappa has convened a meeting of ministers, MLAs, MPs and corporators of all the 198 civic wards across the city on Friday to discuss and draw an action plan to contain the pandemic," said Madhuswamy.

With 1,148 positive cases, the city''s Covid tally rose to 12,509 and active to 10,103, while 2,228 were discharged, including 418 on Wednesday, while 177 succumbed to the infection since March 9, with 23 in the last 24 hours.

"The Chief Minister ordered deploying more ambulances in the containment areas where cases have been spiking daily to rush Covid patients to the nearest hospital for immediate treatment," said Madhuswamy.

The city civic corporation -- Bruhat Bengaluru Mahanagara Palike (BBMP) --has increased the containment zones to 3,181 due to more cases spiking, with southern and western suburbs accounting for most infections.

"The containment zones are concentrated more in the city''s southern and western suburbs. Active cases doubled over the last 8 days and shot up to a whopping 12,509 from 4,555 on June 30," an official said.

Refuting graft charges by opposition Congress leader Siddaramaiah in the purchase of medical equipment for treatment of Covid patients, Madhuswamy said the state government had not spent more than Rs 600 crore so far.

"We are running a government. Not a private office. We will give account. He (Siddaramaiah) is welcome to check the accounts and verify the documents," asserted the minister.

In a related development, the cabinet also approved an ordinance to increase the state contingency fund to Rs 500 crore from Rs 80 crore for the Covid-19 induced economic relief measures announced by the chief minister in June.