'Govt managing finances wisely'

'Govt managing finances wisely'

In a statement released to the media on Saturday, the chief minister has claimed that the State will have a revenue surplus in 2009-10, the fiscal deficit will be managed within the Centre’s prescription of 4 pc of Gross State Domestic Product (GSDP) and that there are no financial constraints to disburse salaries for the government employees.

Siddaramaiah on Friday had alleged that the State finances were in shambles and huge borrowings were driving the State towards bankruptcy.

The CM has said that the government has managed the finances with prudence adhering to the limits prescribed by the Fiscal Responsibility and Budget Management Act. It is possible for the State to have revenue surplus of more than Rs 1,000 crore in 2009-10 despite the slow down in economy, the release stated.

Referring to the fiscal deficit, Yeddyurappa has said that Siddaramaiah may look into this year’s Central budget where the fiscal deficit has gone up to 6.8 pc, more than double the fiscal deficit of the State.

The total borrowings of the State were 24.77 pc of the GSDP in 2008-09 and not over 50 pc as alleged by Siddaramaiah. In fact, it has come down from 31 pc in 2004-05 when Siddaramaiah was the Finance minister. Similarly, while 14 pc of the GSDP went for debt servicing during the tenure of Siddaramaiah, it has come down to 10.46 pc in the last fiscal, the CM has pointed out.

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