Karnataka moves to amend fiscal Act to facilitate borrowing of up to 5% of GSPD

By: Express News Service | Bengaluru |

September 16, 2020 2:24:04 am

Karnataka Chief Minister B S Yediyurappa. (File Photo)

The Karnataka government has decided to amend the Karnataka Fiscal Responsibility Act, 2002 during the forthcoming session of the state legislature to facilitate borrowing to the extent 5 per cent of the gross state domestic produce (GSDP) to overcome revenue shortages incurred during the Covid-19 crisis.

The decision to modify the Act from the earlier GSDP of 3 per cent was taken at a Tuesday meeting of the state cabinet headed by Chief Minister B S Yediyurappa, who also holds the finance portfolio. The changes in borrowing limits imposed on the state will enable the state to borrow an additional Rs 33,000 crore needed for development work during the current fiscal, state Law Minister J C Madhuswamy said.

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