Daijiworld Media Network – Bangalore (SP)

Bangalore, Mar 9: Leader of the opposition in the state assembly, Siddaramaiah, has accused the Yeddyurappa-led government of pushing the state to the abyss of loans and liabilities.

“The financial management of the state government has touched the nadir after the BJP came to power. The government has been on a borrowing spree. During the next year, the state government will face the need to repay Rs 10,128 crore in terms of principal repayment and interest. If the situation does not improve, we will face a critical situation soon,” he warned, while participating in a discussion on the budget presented by Yeddyurappa in the state assembly on Monday March 8.

Siddu pointed out that the state had a loan burden of Rs 56,000 crore in 2006-07, and that the burden had since gone up to Rs 83,510 crore. “This figure is expected to touch Rs 94,000 crore by the next year. How can one hope the government, wilting under such a huge burden, to undertake development programmes? In spite of the clear stipulation of the 13th Finance Commission that the loan liability of the state governments should not cross 25% of the gross domestic product of the respective states, in our state, this has reached 30%. From no angle can this be considered a good handling of finance. Is this the way of efficiently handling the finances of the state?” he questioned.