States in 'dire straits' due to Centre's failure in managing economy: HD Kumaraswamy

News Network
August 29, 2020
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Kumaraswamy

New Delhi, Aug 29: Lashing out at Prime Minister Narendra Modi-led government, former Karnataka Chief Minister HD Kumaraswamy said that states are in "dire straits" due to the failure of the Centre whose "management of the country's economy is flawed and marked by lack of vision".

"The states are in dire straits due to the failure of the Centre whose management of the country's economy is flawed and marked by lack of vision. Instead of asking the states to borrow from the RBI, the Centre itself should borrow from it and compensate the states for the losses," he tweeted.

In a series of tweets, he attacked the Centre over several issues including GST shortfall and also targetted Finance Minister Nirmala Sitharaman over her 'an act of God' remark.

"The irresponsible attitude of the Centre in shirking its commitment towards GST shortfall of the states is condemnable. It has dealt a blow to the federal structure of the country by describing the crisis arising out of COVID-19 pandemic as an unforeseen 'act of God'," Kumaraswamy tweeted.

His response comes a day after Sitharaman referred to COVID-19 pandemic as an "act of God" and said there could be contraction of the economy.

"This year we are facing an extraordinary situation. We are facing an act of God where we may even see a contraction of the economy," she had said.

Alleging that the Centre has literally ruined the economy of states, the Janata Dal (S) leader asked them to resort to borrowings to make up for GST shortfall and also repay them.

"Long ago, architect of the Indian constitution, Dr BR Ambedkar, had expressed concern that the danger of bringing about legislations that establish control over the states' economy through luring cannot be ruled out in the future. Now, the country is staring at such a danger," he said.

He claimed that states that are in a bad economic condition due to COVID-19 and floods are "cursing" the Centre.

"The Centre has placed two options before states. They can opt for borrowing either the GST shortfall amount of Rs 97,000 crores or borrow the entire revenue gap of Rs 2.35 lakh crore that has arisen due to GST shortfall as well as COVID-19 situation," Kumaraswamy said in another tweet.

"Shocked over such a development, the states are bewildered. What can they do if the Centre causes injustice to them citing COVID-19? The states that are in a bad economic condition due to COVID-19 and floods are cursing the Centre," he added.

On Thursday, Finance Miniter Nirmala Sitharaman chaired the 41st Goods and Services Tax (GST) Council meeting.

The Centre has given two options for compensating states on the Goods and Services Tax (GST) to bridge revenue shortfall as the economy faces a prospect of contraction in current fiscal year due to COVID-19 crisis.

The first option provides a special window to states in consultation with the Reserve Bank of India (RBI) to provide Rs 97,000 crore at a reasonable rate of interest. This money can then be repaid after five years from the collection of cess.

The second option is that the entire GST compensation gap of Rs 2.35 lakh of this year can be met by states in consultation with the RBI.

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News Network
April 7,2025

Mangaluru, Apr 7: The long-standing demand for a separate Beary Development Corporation has hit a wall — the Karnataka government has officially stated that no such proposal is currently under consideration.

Beary-speaking people, mainly settled across Dakshina Kannada, Udupi, and parts of Kodagu, have been urging the government to set up a dedicated body for the welfare of their community and the promotion of their unique 1,200-year-old language. But during the recent legislative session, Minority Affairs Minister B.Z. Zameer Ahmed Khan confirmed that his department has not received any proposal on this matter.

The clarification came in response to a question by MLC Ivan D’Souza, who highlighted the community’s cultural richness and a population of over 25 lakh. “The community has raised this demand several times to support education and social upliftment, but the government hasn’t taken any concrete steps,” he said.

In his reply, the minister pointed out that the Karnataka Minorities Development Corporation (KMDC) already runs various welfare schemes for Muslim, Christian, Jain, Buddhist, Sikh, and Parsi communities. Since Beary speakers are considered part of the Muslim community, they are eligible for benefits under these existing programs, he added.

Still, many in the Beary community feel that without a separate development body, their identity, language, and specific needs risk being overlooked.

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Agencies
March 28,2025

Udupi: Deputy Commissioner K. Vidya Kumari has directed officials to expedite land acquisition for designated industrial zones in the district to facilitate new industries. She issued these instructions during a meeting at Rajatadri on Wednesday.

Lands have been identified across various taluks for industrial development. The DC emphasized that KIADB must acquire these lands and ensure essential infrastructure—electricity, roads, and drainage—to attract industries and generate employment.

A total of 77 acres of private land has been acquired and compensated, including 31.2 acres in Kerebettu village, Hebri taluk, and 45.7 acres in Shivapura village. However, approval for 36.5 acres of government land is still pending. She instructed the forest department to assess whether this land falls under an eco-sensitive zone.

For the Belapu Industrial Area, the DC urged officials to accelerate minor land acquisitions for road expansion and commence construction at the earliest. She also mandated rainwater harvesting systems for all units in the Miyaru Industrial Area to tackle water scarcity.

Currently, 22 export-based units operate in the district. The DC encouraged further promotion of exports and an increase in their number.

The meeting was attended by Joint Director of Industries Nagraj V. Naik, KIADB Development Officer Srinivasa Murthy, Small-Scale Industries Association District President Harish Kunder, Deputy Director of the District Industrial Center Seetharam Shetty, District Skill Development Officer Arun B., and others.

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