Won’t let any impediment affect recovery of economy post-COVID: CM Bommai

PTI, Mar 17, 2022, 8:09 AM IST

Bengaluru: Karnataka Chief Minister Basavaraj Bommai on Wednesday said his government would not let any impediment hit the speedy economic recovery post-COVID in the State.

”You all know what kind of situation was created due to COVID-19 in the last two years. The effect was not just limited to the health sector but impacted every sphere of our life and put a brake on our economic development,” Bommai said while participating in a discussion on the budget for 2022-23.

He said Karnataka was quick to recoup from the COVID effect once the infections came under control.

Reading out the achievements of his ‘Amrit’ schemes as part of ‘Azadi Ka Amrit Mahotsav’ (platinum jubilee of Indian independence) which were launched on August 15, 2021, and various pro-people policies including health, education, transport, industrial development, infrastructure, skill development, nutrition, woman and child welfare, and agriculture schemes, Bommai said he would firmly move to achieve the goals set by his government.

Regarding the Leader of Opposition Siddaramaiah’s concern over the increasing borrowings, Bommai said in the last two years the revenues were not up to the mark due to COVID-19.

In 2020-21, there was a reduction of Rs 11,444 crore in the commercial tax, Rs 2,079 crore in motor vehicles-related revenue, Rs 1,500 crore in the stamp and registration, and Rs 540 crore in other revenues, the Chief Minister said. He said there was a reduction of Rs 6,897 crore of the central aid.

”Overall, there was a reduction of Rs 21,835 crore in the revenue in 2020-21. While on the one hand there was a reduction in revenue, on the other hand, the spending on health increased due to COVID-19,” said Bommai The Chief Minister explained that limiting the fiscal deficit to three percent was ideal in normal circumstances and not in an abnormal situation caused by the pandemic.

He said the borrowings of Karnataka doubled when Siddaramiaah was Chief Minister.

”From the time we got independence to 2013-14, the total borrowings were Rs 1.38 lakh crore but from 2013-14 to 2018-19 when Siddaramaiah was the Chief Minister who also held finance portfolio, the total borrowings increased to Rs 2.96 lakh crore. This was a 107 percent increase in borrowings in just five years,” said Bommai.

He said this happened despite there was no emergency like COVID-19 and the situation was normal and the economy was booming.

”In 2019-20, the borrowing increased to Rs 3.27 lakh. In just four years, the borrowings saw an increase of 58 percent despite all these problems (COVID and floods),” he pointed out.

Bommai refuted the charge that the Central grant to Karnataka has been reduced and said Prime Minister Narendra Modi has been generously giving a financial grant to the State.