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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.

Davangere, Jan 15: Karnataka Chief Minister B S Yediyurappa on January 14 threatened to resign when the seer of 'Panchamasali Guru Peetha' warned that the community will leave him, if a BJP MLA from the community is not made the minister during the upcoming cabinet expansion.

The chief minister, who is awaiting the BJP high command's nod to expand his cabinet, amid intense lobbying by the aspirants, wanted the seer Vachanananda swamiji and the 'Panchamasali' community to understand his "situation." Yediyurappa pointed out that he has come to power because of the Congress-JD(S) legislators who rebelled against the then coalition government.

The incident took place when Vachanananda swamiji, while addressing an event at Harihara, near here, said "chief minister, you are a good person, Murugesh Nirani (BJP MLA)has helped you a lot, he has stood by you..if you leave his hands this time, the united Panchamasali community will leave your hands." As the swamiji was making this statement, Yediyurappa, who was seated next to him, rose and threatened to leave the stage.

"If you speak like this I will go away...what are you speaking...kindly pardon me, I will leave, you should not speak like this, if you speak like this I can't work..you can give me suggestions, you cannot threaten me," he said, as the swamiji tried to convince Yediyurappa and asked him to take his seat.

As Yediyurappa acceded to his request, the seer said he was not threatening him but was putting forward the rights of the community. The chief minister, who was visibly upset, was seen talking to Home minister Basavaraj Bommai next to him, who even tried to convince the seer not to continue with the topic. Nirani, a MLA from Bilgi who was Industries minister in the previous Yediyurappa government, was seated on the stage when the incident occurred.

Later addressing the event, Yediyurappa said he was not "selfish" and was even ready to resign.

"Vachanananda swamiji has spoken, through you I request him to understand my situation also. If 17 legislators (Congress-JDS), few even as ministers, had not resigned and stayed away, Yediyurappa could not have occupied this Chief Minister position.

You (swamiji) need not make people raise their hands on any demand, if you tell me, I'm ready to listen to you," he said.

Stating that he was ready to take suggestions from the swamiji on all issues, including on how to run the administration for the next 3 years, Yediyurappa said "I'm ready to bow my head and listen to it, if you don't want I'm even ready to resign and go home, I'm not someone who wants to stick to the chair."

Further noting that if he says that the financial condition of the state is not good it will become headline in papers tomorrow, he said he will have to wait till March for the situation to improve.

"I dont have selfishness, I'm aware that if the Panchamasali-Lingayat community had not stood by me, I could have not sat on this chair (CM)... but kindly understand my situation also," he added.

Yediyurappa is expected to expand his ministry later this month after discussing with BJP national president Amit Shah during his visit to the state on January 18.

As the chief minister has already made it clear that 11 of the disqualified JDS-Congress MLAs who got re-elected in the bypolls on BJP tickets will be made ministers, lobbying has been on within the party for the remaining ministerial berths.

Currently there are 18 Ministers, including the chief minister in the cabinet that has a sanctioned strength of 34.

The cabinet expansion will not be an easy task for the chief minister as he will have to strike a balance by accommodating the victorious disqualified legislators as promised and also make place for the old guard, upset at being "neglected" in the first round of the induction exercise.

He also has to give adequate representation to various castes and regions in his cabinet and also deal with allocation of key portfolios.

Bengaluru, Jan 15: Srishti Institute of Art, Design and Technology in Bengaluru has decided to remain shut for two days after a group of BJP workers wiped out graffiti on its outer walls claiming it as anti-Modi and allegedly warned them against any anti CAA agitation there.

According to sources, the group led by Yelahanka MLA S R Vishwanath allegedly even towed away some vehicles of students and faculty parked in front of the institute alleging that they were blocking the road and causing inconvenience to the local people.

Some students have alleged that they were threatened by BJP workers and also the institute's authorities regarding the graffiti and the blocking of the road using traffic police.

They even claimed that BJP workers warned them against organising any anti-NRC or CAA protests.

A few local residents are also said to have joined the BJP workers and raised complaints about the conduct of the institute's students.

According to local BJP workers, the MLA and a few party men had gone near the institute on receiving complaints from locals about vehicles parked there blocking the road, and when they came across the graffiti they painted it with saffron paint to avoid any controversy, and there was no altercation as being alleged.

However, there is no clarity on who drew the graffiti regarding Modi, which according to BJP workers allegedly depicted the PM in poor light.

The institute has declared holiday on Thursday and Friday to avoid any further escalation, keeping the interest and safety of students in mind, sources said.

Interestingly, on Tuesday graffiti had appeared overnight on the shutters of some shops and walls on the Church Street against Modi, CAA and NRC, following which the city police have launched an investigation.