Karnataka govt helplessly chooses Centre's Option 1: 'Borrowing to make up for GST loss'

News Network
September 2, 2020
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Yediyurappa

Bengaluru, Sept 2: The BJP-ruled Karnataka today said it has decided to opt for the first among the two options offered by the Central government for borrowing to meet the shortfall in GST revenues, under which the state will be eligible for a total compensation of ₹ 18,289 crore.
The decision was taken by Chief Minister BS Yediyurappa, who also holds the finance portfolio, after a meeting with Finance officials.
Following the GST council meeting last week, the central government had written to states, suggesting options of borrowing money to make up for the ₹ 2.35 lakh crore shortfall in GST revenues expected in the ongoing fiscal. The Centre has estimated that of this amount, ₹ 97,000 crore compensation requirement is due to GST roll out and the remaining is on account of the COVID-19 impact on the economy.
Giving two options, the Centre had said states can borrow either ₹ 97,000 crore the deficit arising out of GST implementation or the entire ₹ 2.35 lakh crore.
Several non-BJP ruled states have rejected the Centre's suggestion of states borrowing to make up for the GST shortfall, saying the constitutional liability lies with the Union government.
"After the evaluating both these options, it is felt that option 1 would be more beneficial to the state's finances," official release from the Chief Minister's Office said.
The Chief Minister's Office noted that under option 1, Karnataka would be eligible for total compensation of ₹ 18,289 crore, of which ₹ 6,965 crore would come from the cess collected. For the balance of ₹ 11,324 crore, the state would be able to borrow through a special window with the burden of principal and interest repayment being met out of compensation cess fund in the future, it said.
"Further an additional borrowing up to 1 per cent of GSDP (Rs 18,036 crore) will be available unconditionally and another 1 percent borrowing can be linked to certain reforms as earlier suggested by Government of India," it said.

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News Network
January 18,2025

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Kadaba, Jan 18: In a heartrending incident, a 16-year-old student lost his life on Friday, January 18, after the motorbike he was riding skidded off the road and plunged into a culvert on the Dharmasthala–Mardhala–Subrahmanya state highway near Gargaspal, Peradka. 

The accident spot falls under the Noojibaltila gram panchayat in Kadaba taluk of Dakshina Kannada district. 

The victim, Ashish, a tenth-grade student from a private school in Peradka, was the beloved son of Vishwanath of Hosamane Kaana in Noojibaltila village. His untimely demise has left his parents and sibling in profound grief.

The accident occurred during Ashish’s routine commute to school. Despite the swift intervention of a local resident, Sridhar, who rushed him to a private hospital in Kadaba, medical efforts could not save him. A case has been registered at the Kadaba police station.

The culvert where the accident happened has long been criticized by locals for its flawed and unsafe design. Numerous accidents have reportedly occurred at this spot, prompting repeated appeals from residents for immediate rectification. Community members have once again called upon authorities to prioritize repairs to prevent further tragedies.

Responding to the incident, Kadaba tahsildar Prabhakar Khajure underscored the importance of curbing underage driving. He directed the police department to take stringent action against minors found operating vehicles and cautioned parents about the serious consequences of providing vehicles to underage children.

This incident serves as a grim reminder of the pressing need for both infrastructural improvements and stricter enforcement of traffic regulations to safeguard young lives.

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News Network
January 14,2025

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Jeddah: In a significant step towards strengthening bilateral ties and religious collaboration, Saudi Arabia and India signed the 2025 Hajj agreement during a ceremony in Jeddah.

The agreement was formalized by Saudi Arabia’s Minister of Hajj and Umrah, Dr. Tawfiq F. Al-Rabiah, and India’s Minister for Parliamentary and Minority Affairs, Kiren Rijiju. The event was attended by key dignitaries, including the Indian Ambassador to Saudi Arabia, Dr. Suhel Ajaz Khan, and the Consul General of India in Jeddah, Fahad Ahmed Khan Suri.

Under the agreement, Saudi Arabia has allocated a quota of 175,025 pilgrims from India for the 2025 Hajj season. Of this, 70% of the slots will be managed by the Hajj Committee of India, while the remaining 30% (approximately 52,507 slots) will be facilitated by private Hajj Group Organizers in line with India’s Haj Policy 2025.

The agreement emphasizes improving the overall pilgrimage experience for Indian Hajjis, focusing on enhanced services, expanded facilities, and streamlined logistical arrangements.

Minister Kiren Rijiju expressed the Indian government’s commitment to providing the best possible services to pilgrims. “Our government is dedicated to ensuring an improved and hassle-free pilgrimage experience for all our Hajjis,” he stated. He also thanked Saudi authorities for their cooperation and support.

During his visit, Minister Rijiju met with Sheikh Dr. Mohammed Al-Issa, Secretary-General of the Muslim World League, to discuss interfaith dialogue and global peace initiatives. He acknowledged Dr. Al-Issa’s impactful visit to India and praised his efforts in promoting harmony.

The minister also visited the Jeddah Hajj Terminal to inspect and review the arrangements and preparations for Hajj 2025. This visit underscored the commitment to ensuring a seamless and enhanced pilgrimage experience for Indian Hajjis through meticulous planning and improved facilities.

Indian Prime Minister Narendra Modi welcomed the agreement, describing it as “wonderful news” for Indian Hajis. In a post on X, he reiterated his government’s unwavering commitment to improving the pilgrimage experience for devotees.

(Inputs from Dr P A Hameed Padubidri, Riyadh)

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News Network
January 6,2025

Bengaluru: An eight-month old baby has been detected with the human metapneumovirus (HMPV) in a Bengaluru hospital on Monday, with reports going viral online. This is likely the first reported case of HMPV in the country after the recent spike in China.

The baby is reportedly undergoing treatment in a private hospital in northern Bengaluru.

The Karnataka state health department has maintained that there is no cause for concern.

"We don't know what strain of virus is spreading in China. Without knowing that, we cannot say that this reported case is concerning. We have been reviewing all influenza-like illnesses (ILIs) from December to check for any strain that is concerning. There is no such concerning spike across the state or country," said a well-placed source in the state health department.

The HMPV is a known virus (first discovered in 2001) that causes respiratory symptoms similar to that of a common cold, largely affecting children below the age of five. It is not a new virus.

Cases have been reported in the past, especially in the winter season, note experts and health department officials, making it not an immediate concern, unless an unusual spike is observed.

In December 2024, 714 suspected cases of HMPV were tested in 16 Virus Research and Diagnostic Laboratories (VRDLs) across the country, of which only nine were confirmed positive.

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