Cong-JD(S) won by distributing liquor and money: BSY over BJP’s bypoll debacle

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, Mar 12: Karnataka on Thursday confirmed another positive case of the deadly coronavirus, taking the total number of infected persons to five in the state.

According to a source from the State Health Department, the infected person, a 26-year-old patient had recently returned from Greece. He is currently under observation in an isolation ward in a city hospital.

Bengaluru, Apr 17: The Karnataka government on Friday asked Information Technology, biotechnology and allied companies not to go for closure or layoffs citing lack of work orders due to COVID-19 lockdown and instead consider measures like cutting salaries among other things.

It said IT/BT companies in the state can resume operations with 50 per cent from their office space after April 20.

Deputy chief minister C N Ashwath Narayan, who is also in charge of IT & BT department, held video consultation with the captains of the industry in light of the disruption caused due to the lockdown, and discussed on the way forward - both for effective implementation of the lockdown as well as the future course to deal with the unique circumstances.

"Immediately we are going to permit 50 per cent, but it doesn't mean that they will be able to mobilise 50 per cent immediately. It will take few weeks for them to do so. Gradually percentage will increase and it will start getting back to normalcy," Ashwath Narayan told reporters.

Stating that there were discussions regarding layoffs, he said, companies should not go for layoffs, instead of that gradation or deduction in the salary should be taken up, so that it doesn't affect the functioning of companies also that are facing less orders.

"On handling such financial crisis they (industry) wanted government consideration with mutual cooperation and understanding the concerns," he added.

Pointing out that concerns were also expressed regarding measures or protocol that needs to be followed if any positive cases are reported in any of the office spaces, Ashwath Narayan said, certain guidelines will be issued in consultation with the Health Department.

"Once the relaxation is given this may become the usual phenomena, as cases will be reported here and there... so in that scenario how we need to work and handle the situation is important, so we will be working on protocols how to handle the situation. So far we have planned for residential areas and not for work spaces," he said.

The deputy chief minister said the IT and BT industry leaders are extremely happy with regard to the support system or backup given by the government of Karnataka, particularly IT/BT department.

Even during this crisis period in the entire world, Karnataka and Bengaluru were able to get a good reputation and become reliable partner, as IT/BT service providers in both the city and the state were able to provide excellent quality services to their clients without any interruption, he said.

If you compare with any state or country, we have done extremely well, and hope that this would get more business, he added.

Biocon chief Kiran Mazumdar Shaw, Infosys co-founder Kris Gopalakrishnan, who is also the Chairman of Vision Group IT, were among others present at the video conferencing.

Noting that concerns expressed by the industry regarding passes for employees to commute to office, Ashwath Narayan said, the government would make necessary arrangements in this regard, considering measures that need to be taken after April 20.

Regarding providing transport facility, they can seek for services from public transport Bangalore Metropolitan Transport Corporation (BMTC) on a contract basis, he said, adding that "We will be ready to facilitate BMTC."

The minister said the industry leaders wanted internet services to continue with the same quality and without any interruption.