From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Mar 24: Amidst noisy scenes, slogan shouting and pandemonium with opposition Congress members continuing their dharna in the Karnataka Legislative Assembly for the third day demanding a High Court monitored probe into the sex CD scandal that resulted in the resignation of Ramesh Jarakiholi from the cabinet, Chief Minister B S Yediyurappa read out his reply to the debate on the State’s budget for the year 2021-22 and the House passed it along with other essential finance bills on Wednesday.

The opposition Congress members led by Leader of Opposition Siddaramaiah continued shouting slogans and demanded resignation of six ministers, who had moved the court and secured injunctions against publication of any negative reports against them, and also seeking an FIR against Ramesh Jarakiholi.

The Chief Minister, in his reply, justified the State Government’s decision to raise loans and contended that no government had implemented developmental or plan programmes without borrowing. Pointing out that the government had to go in for debts and borrowing faced with the havoc caused by the worst-ever Corona pandemic and the lockdowns that had severely damaged the economy besides being faced with series of disasters and natural calamities like floods and devastation, he said there are instances when government had incurred heavy debts even when the economic situation was very stable and strong.

“We have incurred debts to solve the problems of the people and infuse growth in the economy. We have not borrowed to enjoy and spend lavishly on dinners,’’ Yediyurappa said taking strong umbrage at Siddaramaiah’s criticism of the budget as anti-people and revenue deficit. "He should have appreciated the tough situation before the government and spoken by giving a correct picture,’’ he said.

Even as the Assembly session began, Speaker Vishweshwar Hegde Kageri appealed to the Congress members to resume their seats by calling off the dharna. When his appeals fell on deaf ears, the Speaker took up the question hour and immediately announced that the replies to the questions have been tabled and asked the House Assuramce Committee chairman to table the committee’s report, following which he announced that the debate to the budget has been concluded allowing the Chief Minister to give his reply even as the Congress members kept on raising slogans from the well of the House.

The Chief Minister claimed that the State’s budget for the year 2021-22 was 'one of the best' considering the difficulties and challenges faced by the government. "I have ensured that no taxes or new levies have been imposed on the people knowing fully well the difficulties faced by them and tried my best to protect the interests of all communities. As the budget was presented on International Women’s Day, special attention has been given to women and priority has been accorded to empowerment of women to encourage them to take up new occupations or trades and engage themselves in economic activities. Farmers, industries and traders have been protected and all the districts in the State have been benefited with some new programme,’’ he said pointing out that almost all the media have praised the budget.

Instead of levying fresh taxes, surcharges or cess etc, the budget has tried to break new path by expanding and strengthening the resource mobilization network and realizing the debts and dues owed to the government even while going out to raise the non-tax revenues, Yediyurappa said claiming that he had done sufficient groundwork and preparation before presenting the budget.

The State’s Gross Domestic Product (GDP) has come down, which was quite natural in view of the economic slowdown and the consequent fall in revenue mobilization after the Corona pandemic and the government had no other alternative but resort to borrowing. The Centre has permitted the States to borrow up to 4% of Gross State Domestic Product (GSDP) and the government will make use of the facility while taking care not to go in for unnecessary debts.

Fortunately for Karnataka, the economy has shown resurgence in the last quarter on account of the sustained efforts of the government and fiscal discipline. But it will take quite a long time for economic revival and it cannot happen within a quarter, the Chief Minister said.

Yediyurappa said the Karnataka Fiscal Responsibility (Amendment) Bill, 2021, was amended to limit the borrowings at 4% of the GSDP in 2021-22. In the year 2020-21, amendments to the 2002 Act were made to increase the borrowing limit from 3% to 5% of the GSDP following the pandemic and decline in revenue. This also limits the state’s total liabilities to 25% of the GSDP.

The state government will be burdened with an additional Rs 12,000 crore a year if all vacancies in the state administration were filled and this would increase committed expenditure and reduce available funds for capital expenditure. Of the sanctioned posts of 7,68,975, a total of 5,16,073 posts were filled through direct recruitment. Many Group ‘D’ posts such as drivers and data entry operators were vacant and these posts would be outsourced. Only major vacant posts would be filled through the direct recruitment in a phased manner, the chief minister said.

Karnataka is not the only State to present a revenue deficit budget for 2021-22 but many other states too have tabled revenue deficit budgets due to impact of COVID-19 and lockdown. States such as Kerala, Maharashtra and Tamil Nadu too presented revenue deficit budgets in 2021-22.

The Chief Minister said the total liabilities at the end of 2021-22 was estimated to be Rs.4,57,899 crore, which is 26.9% of the GSDP and in this regard suitable amendment would be brought to the Karnataka Fiscal Responsibility Act 2002, he said.

The state budget and bills related to the budget were passed amidst protest and sloganeering by the Congress members.

The Chief Minister strongly defended the decision of the six ministers to go to court and obtaining gag order against the telecast or publication of defamatory material against them following the sex-for job scandal involving Jarakiholi and said everybody has a right to protect their reputation and self-respect.

In the midst of dharna, the Karnataka Transparency in Public Procurements (Amendment) Bill 2021 was passed in the Legislative Assembly on Wednesday, to exempt all types of construction works not exceeding Rs two crore, entrusted by any procurement entity to the Karnataka Rural Infrastructure Development Limited (KRIDL).The Bill amended the Karnataka Transparency in Public Procurements Act, 1999.

However, the bill said while sub-letting construction works through tender it should reserve in favor of persons belonging to SCs and STs in accordance with the provision of the Act.