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Karnataka
By Our Special Correspondent
The 36-page address was more of a compendium of the achievements of the many departments of the Government. A singular omission was any reference to the Cauvery river water tangle. The address was also free of political polemics and there was only a passing reference to the communal riots in Gujarat. "The Gujarat incident reinforced the need for a strong, committed and continuous effort towards communal peace,'' it said. In a fairly long defence of the Government's handling of the State finances, the Governor said: "My Government's self-imposed fiscal discipline has earned acclaim for Karnataka as a fiscally well-managed State and as a reform leader.'' Far-reaching steps had been taken in the areas of fiscal and financial management during the current year, including adoption of the Fiscal Responsibility Act and the value-added tax law. Five departments, which had placed their departmental medium-term fiscal plan before the Legislature, would be placing their second plan in the ensuing session. At least 10 more departments would place their first medium-term fiscal plans before the House in the coming session.
`Outlook positive'
The second consecutive drought, and the shortfall in receipts, both in its own revenues and Central devolution, had compelled the State Government to impose a revised expenditure estimate ceiling and go in for budget constraints. However, the outlook for 2003-04 was positive, tempered with fiscal caution. It would be the endeavour of the Government to raise additional resources through suitable incentives, and cut non-Plan expenditure, particularly that in the administration.
Regional imbalances
Referring to the Government's efforts to remove regional and district inequalities in socio-economic development, Mr. Chaturvedi said it was awaiting the Centre's decision on the establishment of a Bench of the Karnataka High Court in North Karnataka. An all-party delegation, led by the Chief Minister, S.M. Krishna, had called on the Prime Minister, Atal Behari Vajpayee, impressing upon him the need for the Bench.
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