From Our Special Correspondent

Daijiworld Media Network

Bengaluru, Sept 15: Even as the vexed issue of payment of compensation due to Karnataka on account of the implementation of the Goods and Services Tax (GST), the State Government has decided to raise a loan of Rs 33,000 crore this year.

The decision taken at the State Cabinet meeting chaired by Chief Minister BS Yediyurappa in Vidhana Soudha in Bengaluru on Tuesday follows the Narendra Modi regime’s approval under its COVID 19 economic stimulus package that had allowed the State Governments to increase their fiscal borrowing on account of the sharp fall in revenues by permitting them raise the fiscal deficit limit from the present 3% to 5% under the Fiscal Responsibility Act.

Briefing reporters after the State Cabinet meeting, Law and Paliamentary Affairs Minister J C Madhuswamy said the enhanced fiscal deficit limit of 2% allows the State Government to go in for market borrowing of Rs 36,000 crore. ``However, we have decided to go in for a borrowing of Rs 33,000 crore as an one time measure to carry out the State’s developmental activities,’’ he said.

Answering questions, he made it clear that the GST Council was yet to take a decision on releasing the GST compensation that is due to Karnataka.

Madhuswamy said the State Cabinet has approved release of Rs 11.65 crore for installing elaborate safety measures in 583 government hospitals having x-ray plants in accordance with the Atomic Energy Regulation Board’s stipulations.

The State Cabinet also decided to approve the demolition of the Karnataka Bhavan 1 and 2 buildings in Delhi at a cost of Rs 120 crore. Chief Minister B S Yediyurappa will be participating in the BhoomiPooja for the project on September 18, when he would be in the national capital, the minister said.

Madhuswamy said the State Cabinet agreed to provide Government guarantee to the ESCOMS for raising a loan of Rs 5575 crore.

The State Cabinet approved the proposal for establishing of two private universities by the Vidyanidhi Education Trust and JagadguruMurugharajendra Mutt’s educational institutions in Chitradurga.

In another decision, the State Cabinet cleared the long pending issue of grant of mining leases to the National Mineral Development Corporation (NMDC) at Donimalai in Sandur taluk of Ballari district. The proposal is likely earn royalty of Rs 647 crore per year the State.

The State Cabinet approved release of Rs 14.89 crore for construction of a flyover near Kyathasandra on the Bengaluru-Tumkuru highway near the Siddagranga Mutt. The total cost of the construction work to be carried out jointly with the Railways is Rs 35.43 crore.

In another decision, the State Cabinet accorded administrative approval for the construction of the Mysuru deputy commissioner’s office at a cost of Rs 84.69 crore.