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Southern States - Karnataka Printer Friendly Page   Send this Article to a Friend

Govt. claims success in fiscal management

By Our Special Correspondent

BANGALORE FEB. 27. The Karnataka Governor, T.N. Chaturvedi's address to the joint session of the Legislature here today was economical in the matter of setting out an agenda of governance for the next one year and in announcing new programmes and policies.

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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