Karnataka's financial position sound: Deputy CM

Gulbarga, Aug 4 (UNI) Dismissing the charge that Karnataka's financial position has deteriorated, Deputy Chief Minister B S Yediyurappa today said the fiscal position was sound, a fact vouched by Prime Minister Manmohan Singh.

Addressing a press conference here, Mr Yediyurappa, who also holds the Finance portfolio, said the total tax collection would be Rs 50,455 crore during the current financial year and the plan size would be Rs 17,782 crore.

He said that though the Government had incurred substantial loss of income due to ban on arrack, lotteries and waiver of farm loans, there would be no considerable deficit in the exchequer.

Admitting that the ban on arrack had led to increased sales of Indian Made Foreign Liquor, he said that consequently, the Government would get an additional Rs 900 crore to Rs 1,000 crore as excise tax, compensating to some extent the loss incurred by the ban on arrack.

Mr Yediyurappa said the Prime Minister, who was in Bangalore yesterday along with Agriculture Minister Sharad Pawar and Planning Commission Chairman Montek Singh Ahluwalia, appreciated the development schemes, being implemented by the State Government.

He said tenders would be finalised for the construction of airports in Gulbarga, Shimoga and Bijapur within a month from among 19 competitors.

UNI