Karnataka's financial position is sound, says CM

Bangalore, Nov 5: Karnataka Chief Minister D V Sadananda Gowda today said that the financial position of the state "is very sound" and revenue collection in the last seven months in four key sectors has registered a 22 per cent increase.

Dismissing opposition parties' remarks on the financial health of the state as "far from truth", he said while tax revenue collection in commercial taxes witnessed a 24 per cent growth, it was 16 per cent in state excise, 32 per cent in Stamps and Registration and seven per cent in Motor Vehicle departments.

Presenting the performance card for the seven-month period in the 2011-12 financial year in the backdrop of opposition parties accusing the government of facing finance cruch to meet development and drought relief expenses, Gowda at a press conference here said the tax collection in four departments has touched Rs 25,137 crore, up by 22 per cent compared to Rs 20,648 crore during the same period last year.

When compared to budget estimates of Rs 42,475 crore, actual collection from four major taxes in the first seven months itself has reached 59 per cent of the annual budget estimates, he said.

Gowda also reeled out figures on release of funds on major schemes including Rs 1329 crore for social security pension as against the budget estimates of Rs 1742 crore, Rs 200 crore for Bhagyalakshmi child insurance scheme as against the earmarked outlay of Rs 408 crore, Rs 9871 crore grants to Panchayat Raj Institutions, Rs 400 crore for Suvarna grama and Rs 474 crore towards Suvarna Bhoomi project.

Preparations were in full swing for the first ever Global Agri-Investors meet slated for Decemeber one and two aimed at attracting Rs 50,000 crore investment, he said. Road shows would be held in New Delhi on November eight and in Mumbai on November 15, he said.

PTI