Rs. 12,000 cr. for economy restructuring plan

By Our Special Correspondent

BANGALORE, APRIL 16. Karnataka will get Rs. 12,000 crores, starting this June, towards its economy restructuring programme, according to the World Bank Vice-President (South Asia Region), Ms. Mieko Nishimizu.

Disclosing this at a two-day workshop on "Improving business environment for sustained growth in Karnataka", organised by the World Bank and State Government here today, Ms. Nishimizu said a public-private partnership was vital to eradicating poverty, not just in Karnataka, but elsewhere too. There was tremendous scope for private investment in the State's growth, she said and mentioned that it exported less than $ 3 billion worth of goods in 1999, compared to China's Guangdong province which exported $ 80 billion worth of goods.

She said that growth-oriented governments needed to move towards partnerships with the private sector to facilitate an environment for investments. Private investments would propel economic growth. Governments had to ensure good governance and fiscal discipline.

She said concerns such as social inequities, digital divide and poverty had to be addressed by investors too. The Government and the private sector had to change their mindsets and start doing business differently and efficiently for sustainable growth. Governments focussing on lowering public sector deficits and business risks, and corporates showing social responsibility, were what was needed.

The Chief Minister, Mr. S.M. Krishna said his Government was conscious of the deficiencies in infrastructure and was addressing the matter. The Government was concerned with the urban-rural divide and had chalked out several programmes to bridge the gap. In the next four years, he hoped the Government would be able to alleviate poverty to a certain extent.

The government was finding resources mostly by way of taxes to achieve growth. He concurred that there was a need to encourage the growth of business and that it required a conducive environment for attracting investments.

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Section  : Southern States
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