Karnataka's fiscal deficit within norms: CM

Rejecting opposition BJP's charges, Karnataka Chief Minister Siddaramaiah today said the state's fiscal deficit was within the norms and the GDSP saw a growth of seven per cent for 2014-15.
"I do not claim that the budget is robust, but we are within the parameters of fiscal responsibilities act," Siddaramaiah, who also holds the Finance portfolio, said in the assembly replying to the debate on the budget presented by him on March 13.
After his reply, the House passed vote on account for first four months commencing from April 1, 2015, fulfilling constitutional requirement as the budget was yet to be passed.

Earlier, BJP MLAs staged a walkout unsatisfied with the Chief Minister's reply.
Shettar during the budget debate earlier had criticised the government on the economy front, saying it had borrowed Rs 42,329 crore as loan in a span of two years after coming to power compared to Rs 45,120 crore borrowed in the entire five-year tenure of the previous BJP Government.
Countering Shettar, the chief minister said the fiscal deficit in the budget was Rs 20,220 crore, which is 2.75 per cent of the GSDP and total liabilities of the state as on 2015 is Rs 1,80,815 crore or 24.56 per cent of the GSDP.

"These parameters are within the three per cent fiscal deficit and 25 per cent of liabilities of GSDP as mandated by the Karnataka Fiscal Responsibility Act," Siddaramaiah said.

Referring to Shettar's claim that the state's GSDP had declined from 7.2 per cent to 7 per cent, despite having an "experienced" Finance Minister, he said the state's GDP grew at seven per cent for 2014-15 as against five per cent in 2013-14.
He also said the total expenditure for 2015-16 is estimated to be Rs 1,42,534 crore, with a revenue expenditure of Rs 1,15,450 crore.
The total receipts are estimated to be at Rs 1,39,476 crore, of which the revenue receipts are estimated to be Rs 1,16,360 crore and Rs 22,950 crore of borrowings, Siddaramaiah said.

He said allocations for central sector schemes had been reduced. "As against the expectations of Rs 11,721 crore of central grants, they have equally reduced their support to central sector schemes."
Siddaamaiah said he had drawn this to the attention of Union Finance Minister Arun Jaitley.
"I spoke to Arun Jaitely over phone. I welcomed giving more funds through central devolution, but I brought to his notice the reduction in support to central sector schemes," he added.