Bengaluru, Sep 22 (IANS) Senior Bharatiya Janata Party (BJP) leader and Karnataka Leader of Opposition R. Ashoka on Tuesday alleged that the state government’s own Finance Department had exposed its financial crisis by stating there was little scope for new schemes and additional borrowing.
Participating in a discussion on the drought situation in the Legislative Assembly, Ashoka cited a Finance Department communication dated September 17 and claimed the government had exhausted much of its borrowing capacity while failing to take timely measures despite warnings of deficient rainfall.
According to Ashoka, the department said projects worth around Rs 1,000 crore had not been included in the budget, and financing new schemes could be difficult until additional resources were identified.
He said the fiscal deficit had reached 2.95 per cent against the three per cent limit under the FRBM framework, while the revenue deficit stood at Rs 22,952 crore. The state’s outstanding liabilities had reached 24.94 per cent of GSDP, close to the 25 per cent limit, he claimed.
Ashoka alleged Karnataka therefore had limited scope to raise fresh loans. He said pending bills had touched around Rs 2 lakh crore, with four departments, including Public Works and Water Resources, accounting for Rs 36,136 crore. Works worth more than Rs 5,000 crore had been approved during the first six months of the financial year, he added.
“Natural drought can be addressed only if there is no financial drought in the government,” Ashoka said, alleging that the financial situation could affect drought relief, drinking water and fodder arrangements.
He accused the government of delaying drought-related action despite warnings from the India Meteorological Department in April and indications of a possible El Nino impact from the Centre.
He questioned why the government declared drought four months later, despite submitting a Cabinet note in April.
Ashoka also alleged inadequate arrangements for drinking water, fodder, cattle shelters and borewell repairs. He said Karnataka had around 37 lakh borewells and questioned how many were functioning.
Criticising cloud seeding, he claimed Rs 28 crore had been allocated despite weather department warnings and alleged the exercise had not benefited farmers. He said 67.32 lakh hectares had been sown by September 4 against a target of 84.10 lakh hectares.
Ashoka demanded a farm loan waiver, Rs 50,000 per acre compensation, regulation of private lenders, employment under rural schemes, fodder stocks, cattle shelters, lake desilting and relaxation of borewell restrictions where necessary.
He also sought assistance for migrant families and educational support for their children, as well as implementation of a proposed Rs 5,000 crore natural disaster fund.
–IANS
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