'Unhappy' Congress high command asks Karnataka CM to clarify flag row

Bengaluru, Apr 13: Karnataka chief minister B S Yediyurappa on Monday said the COVID-19 situation has thrown the state into a deep financial trouble and there is a need to to find ways to overcome the present crisis, as he announced certain measures aimed at resource mobalisation.

He said the state government was awaiting guidelines from the Centre regarding the implementation of lockdown during the next two weeks, and noted that discussions were on regarding relaxations on the sale of liquor and the decision will be taken after April 14.

Yediyurappa on Monday held a meeting with officials of various departments along with his cabinet colleagues and the chief secretary.

"The possible situation once the lockdown is released, was widely discussed in the meeting. Discussion was also held about the financial situation of the state government and how to mobilise resources. Many suggestions were given and it was decided to implement those suggestions," the Chief Minister said.

Speaking to reporters after the meeting, he said, "...the COVID-19 situation has thrown our state into deep financial trouble and there is a need to to find ways to overcome present financial crisis."

Yediyurappa said it was decided to speed up the disposal of cases related to regularisation of unauthorised constructions which are pending before the High Court and Supreme Court, during the meeting.

"If the court decides the matter, thousands of people who own unauthorised houses will be relieved," he said, adding that this will also help government in mobilising resources for fund starved development works.

He said in addition to this the government is planning to auction more than 12,000 corner sites lying idle in Bengaluru, and it was also decided to allow auction of corner and vacant sites in respective urban development authorities across the state.

"By auction of corner sites in Bengaluru, we plan to mobalise about Rs 14,000-15,000 crore. BDA is preparing for it, only if we get good market value we will sell or else no," he added.

It was also decided to amend the law governing permission to allow sites in private and co-operative housing societies, the Chief Minister further said, adding that hundreds of societies were waiting for approval from government for releasing the sites.

Yediyurappa said it was decided to use Rs 1,000 crore available in Rajiv Gandhi Health University to upgrade medical college hospitals.

It was also decided to distribute free milk to slums and poor for one more week, the Chief Minister said while appealing to sugar factory owners to clear the pending payment to the tune of Rs 2,834 crore to farmers in 11 districts.

The government has also released Rs 45 crore compensation for the loss of paddy crop in Raichur and Koppal District due to hailstorm based on report submitted by Deputy Commissioners, he added.

Responding to a question, Yediyurappa said, still no guidelines have come from the Centre on lockdown implementation for next two weeks, we are waiting for it.

Once the guidelines come it will help us to speed up the process of lockdown, and also relaxations if any.

Asked what plans does the government have if states are asked to decide on relaxation, he said, already Prime Minister has said that guidelines will be given, if they say on certain matters states can take decision, we will decide on what needs to be done to improve the state's economy.

To a question on relaxation on sale of liquor through Mysore Sales International Ltd (MSIL) outlets, he said, discussions are on, after April 14, we will take decision in this regard.

Bengaluru, Apr 1: Karnataka government along with BBMP has asked project contractors, builders and developers in the city not to send their labourers to their native place and instead provide them with amenities like food and shelter in this lockdown period.

It was also warned with legal action would be taken against them if they violating the instructions from the government .

Bengaluru, Mar 8: The economic slowdown in the country had a cascading effect on Karnataka, as its growth rate for outgoing fiscal 2019-20 is projected to be 6.8 per cent against 7.8 per cent in the last fiscal (2018-19), a senior official said on Saturday.

"The Gross State Domestic Product (GSDP) is estimated to be 1 per cent less at 6.8 per cent for this fiscal from 7.8 per cent in the last fiscal due to slowdown in manufacturing (industry) and services sectors," an official of the state finance department told media.

Though the agriculture sector has revived from 1.6 per dent in the drought-hit last fiscal (2018-19) to register 3.9 per cent this fiscal, growth rates of industries and services will be 4.8 per cent and 7.9 per cent for 2019-20 against 5.6 per cent and 9.8 per cent respectively in 2018-19.

"The GSDP is projected to grow at 6.3 per cent in the ensuing fiscal of 2020-21 due to continued slowdown in the national economy," the official hinted.

According to the state's economic survey for 2019-20, the farm sector grew more than double to 3.9 per cent from 1.6 per cent a year ago due to increase in the production of foodgrains, dairy products and fish catch.

Foodgrain production across the state rose to 136 lakh tonnes from 128 lakh tonnes a year ago, the survey revealed.

"In line with the national Gross Domestic Product (GDP) growth rate decline, Karnataka's GSDP has declined from a high of 13.3 per cent in 2016-17 to a low of 6.8 per cent in 2019-20.

"The GSDP has declined from a double-digit growth of 10.8 per cent in 2017-18 to 7.8 per cent in 2018-19 and 6.8 per cent in 2019-20," the survey pointed out.

The survey has adopted the all-India growth rate for the services sector growth in the state, which reflects the impact of slowdown in the key sector.

At current prices, the southern state's GSDP is expected to be Rs 16,99,115 crore (budget estimates) with a 10 per cent growth rate in the next fiscal (2020-21).

"Real estate, professional services and ownership of dwellings contributed 35.31 per cent to the GSDP in 2019-20, followed by manufacturing with 15.32 per cent, trade and repair services 9.51 per cent and crops 7.44 per cent," said the survey findings.

Per capital income in the state at current prices is estimated to be Rs 2,31,246 in 2019-20, an increase of 8.8 per cent from Rs 2,12,477 in 2018-19.

"The per capita income in the state is 58.4 per cent more than that of all-India rate at Rs 1,35,050 in this fiscal," the survey added.