State govt may raise Rs 2,000 cr loan: CM

Tax on ores to be increased to fetch revenue

Speaking to reporters here on Thursday, Yeddyurappa stated that there is scope for the State to maintain fiscal deficit of four per cent, and hence it could borrow money for development programmes and also as part of resource mobilisation.

The fiscal deficit stood at 3.6 per cent last year. The Centre has raised its fiscal deficit up to 6.5 per cent and the states were allowed to have fiscal deficit up to four per cent.
“We want to make use of this four per cent fiscal deficit to raise loans to the tune of Rs 2,000 crore,’’ he said.

Asked whether the State was floating any bonds or debentures, Yeddyurappa said the modalities were being worked out and no final decision has been taken yet on the matter. “We will shortly decide on how to go about to meet the fiscal deficit,’’ he added.

Resource mobilisation

The Chief Minister admitted that there was some setback in the initial four months of the fiscal in  mobilising resources, particularly, the sales tax.

However, there has been remarkable improvement in the situation. The State has decided to increase the tax on ores which is expected to fetch an additional revenue of Rs 400 crore.

Efforts will also be made to get more funds from the Centre and international funding agencies like World Bank and Asian Development Bank for various development projects.  Yeddyurappa allayed the apprehensions on the State’s finances becoming poor in the days to come. The Chief Minister said  that the State will also resort to austerity measures and a meeting will be held with officers in about ten days to chalk out such measures.

Road project

The State government has decided to take up a major project of developing 50,000 km roads in all the rural Assembly constituencies of the State in the next three years. About 10,000 km stretches will be developed this year.

The Chief Minister told reporters that the rural roads will be developed on annuity basis at the rate of 50 km road in each of the 200 Assembly constituencies. The road works will be given to resourceful contractors with the sole condition of maintaining their quality.
The process of tendering and other formalities will be completed in about three months.
The State government will meet only 25 per cent of the cost of the project and the rest will have to be borne by the contractor for the completion of works.

Stating that the quality of the rural roads would be maintained on par with Prime Minister’s Gram Sadak Yojana of the Central government Yeddyurapa said, the details of the ambitious road project were being worked out.

A task force, comprising mainly non-politicians, will be constituted in all the districts to monitor the quality of works. The task force will be advisory in nature and will be vested with the authority to inspect  the works. They will also ensure whether the particular scheme or work was really needed for the people or not.

DH News Service

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