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BENGALURU:
The cash-strapped Karnataka government has decided to borrow Rs 33,000 crore to ensure adequate fund to meet the cost of developmental works across the state.
Speaking to newsmen, after a cabinet meeting here on Tuesday, the law and parliamentary affairs minister J C Madhuswamy informed that the decision to borrow loan was taken following shortfall in the collection of revenue following the onset of the COVID-19 pandemic.
Informing that to facilitate the raising of additional loan from external agencies, the cabinet had decided to amend the Karnataka Fiscal Responsibility Act, he said that “It would facilitate the state government to raise loans to the tune of about 5 per cent of the State GDP volume”.
“It is in addition to the Union Government’s sanction to mobilise additional funds to bridge the shortfall in the disbursal of the GST share from the Union Government” he said. (Agency)
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