State’s financial condition is good: Siddaramaiah

Mysuru: The financial condition of the state is good and is well within the parameters laid down under the Fiscal Responsibility Act, asserted Chief Minister Siddaramaiah.

He was speaking to mediapersons after casting his vote in elections to the Legislative Council from Mysuru-Chamarajnagar constituency, at Mysuru City Corporation, here on Sunday.

Reacting to allegations made by former Chief Minister Mr B.S. Yeddyurappa that Karnataka’s finances were in a poor state, Mr Siddaramaiah, who also happens to be Finance Minister, explained, “If a state has to borrow money for paying salaries, and for the revenue expenditure for carrying out developmental work, then it can be considered that the economy is in a bad condition. Finances are not good when they are not within the parameters of the Fiscal Responsibility Act, ie. when the revenue is not surplus, fiscal deficit is not less than 3 percent and when the State’s loans and liabilities are not less than 25 percent of the GSDP (Gross State Domestic Product). But our state is well within these parameters. Hence we are doing good. The allegation by Mr Yeddyurappa is baseless. He either does not have the required information or is making comments with political motives,” the CM said.

When asked about another allegation of Mr Yeddyurappa that the state is lagging behind in tax collection, Mr Siddaramaiah said, “if that was true, how could we release funds for developmental works.”

On charges that he was not able to devote enough time to the finance portfolio, Mr Siddaramaiah said, “This is wrong. I have been holding review meetings regularly. I held the last meeting in October, I will be holding the next one in January, 2016. The BJP has made it a habit to lie, they know how to spoil harmony in society.”