Karnataka Govt to borrow 46K+ cr from markets

Karnataka Govt to borrow 46K+ cr from markets

DH file photo

The state government is set to borrow a whopping amount in excess of Rs 46,000 crore from the markets in 2019-20 in order to finance its expenditure during the year.

The government will be borrowing Rs 46,127 crore from the markets during the year to finance its capital account. This is a jump of 5.5% from Rs 43,731 crore that the state government borrowed last year.

The market borrowing lands up in the capital account of the State Government. Other than the market borrowings, Chief Minister HD Kumaraswamy said that the state government would be taking Rs 5.23 lakh crore from the public account, which is a mere jump of 1.5% from Rs 5.15 lakh crore during 2018-19.

The public money received by or on behalf of the Government of India or the Government of a State shall be entitled to the public account of India or the public account of the State, as the case may be.

The total expenditure envisaged by the State Government in its capital account amounts to Rs 5.73 lakh crore, as against revenues of Rs 5.72 lakh crore, causing a deficit of Rs 686.57 crore during the year.

Interestingly, the capital account deficit of the state is projected to jump threefold in 2019-20, from Rs 173.5 crore during 2018-19.

During 2018-19, the state government, in its revised estimates is expected to garner receipts worth Rs 5.61 lakh crore in its capital account, as against the capital expenditure of Rs 5.62 lakh crore.

The total receipts, during the year, are estimated to be Rs 2.31 lakh crore during 2019-20. The Budget Estimates envisage Revenue Receipts of Rs 1,81,863 crore and Capital Receipts of Rs 48,876 crore including borrowings of Rs 48,601 crore. The total expenditure is estimated to be Rs 2,34,153 crore consisting of revenue expenditure of Rs 1,81,605 crore, capital expenditure of Rs 42,584 crore and debt repayment of Rs 9,964 crore.