Karnataka faces financial crunch as debt zooms 255% in fiscal 2018-19

News Network
September 23, 2020
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Kumaraswamy

Bengaluru, Sep 23: Karnataka is facing a financial crunch, evident from a record 255 per cent increase in its net debt for fiscal 2018-19, an official said on Wednesday while citing a Comptroller and Auditor General (CAG) report.

"In its state finance audit report, the CAG red-flagged that Karnataka's net debt was Rs 17,766 crore in 2018-19 financial year, a whopping increase of 255 per cent over the 2017-18 fiscal," said the report, which was tabled in the state legislature on Tuesday.

A 6-day Monsoon Session of the legislature began on Monday after it was delayed due to the Covid-induced lockdown and surging virus cases across the southern state.

To meet the growing expenditure, the previous Janata Dal-Secular (JD-S)-Congress coalition government borrowed heavily -- 55 per cent of the debt from the open market, 27 per cent from public account, 6 per cent from national social security fund and 5 per cent from the central government.

A fractured verdict in the May 2018 Assembly elections forced the outgoing Congress to ally with the JD-S to form the coalition government, with HD Kumaraswamy appointed the Chief Minister on May 23, 2018.

The resignation by 17 rebel legislators, including 14 from the Congress and 3 from the JD-S in July 2019, however, led to the fall of the 14-month-old coalition government on July 26, 2019 after Kumaraswamy lost the trust vote in the Assembly for want of a simple majority.

Holding the finance portfolio, Kumaraswamy presented two Budgets in July 2018 for fiscal 2018-19 and February 2019 for fiscal 2019-20.

The CAG found that an expenditure of Rs 2,901 crore was wrongly classified by oversight, while the supplementary provision of Rs 1,319 crore was unwarranted.

"The total provision for the fiscal under review was Rs 2.45 lakh crore and expenditure Rs 2.2 lakh crore, while Rs 25,139 crore remained unspent," said the report.

Reappropriation of funds in 27 cases was not judicious, resulting in excess provision.

Noting that the Supplementary Budget was also not properly assessed to be fiscally neutral, the report said it failed to curtail expenditure.

The report advised the BJP government to ensure adjustment of abstract contingent bills in the stipulated time.

"The tax revenue growth rate decreased to 11.13 per cent in 2018-19 from 12.1 per cent in 2014-15," the report added.

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News Network
January 8,2025

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Mangaluru: The Tannirbhavi beach stretch up to the forest department's Tree Park is on the brink of a remarkable transformation under the ‘One Beach, One Destination’ initiative. This ambitious project aims to elevate the beach into a top-tier tourist hotspot through comprehensive upgrades and strategic developments.

Deputy Commissioner Mullai Muhilan MP shared updates during a press briefing on Tuesday, revealing that fresh tenders have been floated for maintaining the main beach. The technical evaluation of tenders for the Tannir Bhavi Blue Flag Beach is nearing completion, with the financial bids set to open shortly. “We are pleased to see major players participating in the tender process,” the DC remarked.

For the main beach, the maintenance contract will span 10 years. Meanwhile, the Blue Flag Beach’s successful bidder will face a progressive financial model—starting with a Rs 50 lakh payment in the first year, escalating to Rs 2 crore by the 10th year, alongside a minimum 5% revenue share for the administration. “Upon completion of the development, the beach will feature continuous activities to enhance its appeal,” he added.

Approximately 90% of the beach’s development work is already complete. Eco-friendly initiatives such as waste management systems and solar installations are operational at the Blue Flag Beach. While entrance work by Mangaluru Smart City Limited is ongoing, the beach remains accessible to the public. Entry fees, set in accordance with Blue Flag guidelines, aim to support sustainable maintenance efforts.

The ‘Blue Flag’ certification represents a global standard in eco-tourism, ensuring clean bathing water, state-of-the-art amenities, safety measures, and sustainable development. Karnataka’s Padubidri and Kasarkod beaches are among the few in India to hold this prestigious certification.

Mangaluru Smart City Limited is spearheading the development of the 1.8-acre area, with an investment of approximately Rs 16 crore. Once completed, the Tannirbhavi Beach is expected to stand out as a vibrant and eco-friendly destination, drawing tourists and locals alike.

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News Network
January 7,2025

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Mangaluru: A tragic road accident claimed the life of a young medical store owner on Monday, January 6, near Tiblapadavu, Natekallu, located on the outskirts of the city.

The victim, identified as 25-year-old Ausaf, was the proprietor of Hajira Medicals and the son of Jaleel, a resident of Derlakatte. 

The unfortunate incident unfolded as Ausaf was riding his bike from Derlakatte toward Tiblapadavu. Upon approaching a divider near Tiblapadavu, a lorry made a sudden turn, resulting in a collision between the motorbike and the rear of the lorry. Ausaf succumbed to his injuries on the spot.

Having completed his education a few years ago, Ausaf had taken up the responsibility of managing Hajira Medicals at Derlakatte Junction. He was well-known in his community for his dedication and service.

Authorities at the Mangaluru South Traffic Police Station have registered a case, and CCTV footage capturing the incident is under review. The tragic loss has left the local community in shock, mourning the untimely demise of a promising young entrepreneur. 

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News Network
January 9,2025

Mangaluru: Establishing a Beary Development Corporation is a valid demand, but its implications must be carefully studied, remarked Speaker UT Khader. He proposed forming an expert committee to evaluate the corporation’s potential impact on the Beary community during a district-level conference of the Beary-speaking community, organized by the Akhila Bharata Beary Mahasabha at Kudmul Ranga Rao Town Hall on Wednesday.

Khader expressed concerns over inefficiencies in existing government-established corporations, such as unfilled leadership positions, lack of appointed members, and insufficient funding. “The Beary Development Corporation must avoid similar pitfalls,” he emphasized. He noted that the Minorities Development Corporation already provides various schemes for Beary Muslims, urging a detailed assessment to ensure the new corporation’s funding does not fall short of current provisions, which could disadvantage the community.

Praising the industrious and self-respecting nature of the Beary community, Khader highlighted the respect Beary elders once commanded in villages. He encouraged the youth to uphold this legacy and actively contribute to the community’s progress. Additionally, he commended the Beary youth for their swift and dedicated responses during emergencies, which have garnered widespread recognition.

Khader underscored the importance of unity, cautioning against fostering divisions within the community. He also stressed the critical role of education in development, urging the maintenance of detailed records for SSLC and PUC students to track progress.

The event was presided over by Azeez Baikampadi, president of the Akhila Bharata Beary Mahasabha. Among the dignitaries present were former MLA Mohiudeen Bava and retired police officer GA Bawa. Dr. UT Ifikhar Ali Farid, honorary president of the Akhila Bharata Beary Mahasabha and chairman of the Karnataka State Allied and Healthcare Council, was felicitated during the program.

In notable initiatives, Kanachuru Monu, chairman of Kanachuru Medical College, unveiled the Mahasabha’s new website, while Sheikhabba Karnire of Expertise Company, Jubail, launched an IAS-IPS program aimed at empowering the Beary community.

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