Approval process for additional borrowing by states simplified
New Delhi, June 25: The government on Monday simplified the process for granting additional fiscal deficit limit to eligible states over and above the three per cent limit of the state GDP.
An official statement said that from now on, the government will process each proposal independently, as and when it is received, as opposed to the earlier process of bunching all state proposals into a single proposal.
During the NITI Aayog Governing Council meeting held June 17, some states had pointed out that the permission accorded by the Finance Ministry to eligible states was sometimes delayed due to bunching of proposals received from different states at different intervals into one consolidated approval.
"The government, keeping in view its policy for cooperative federalism, has henceforth decided to simplify the process of approval of such additional borrowing limits requested by states. It will process each proposal along with complete information independently as and when it is received in contrast to the earlier process of bunching all proposals into a single proposal," the statement said.
"It is expected that this will further enhance transparency and predictability in the borrowing calendar and boost capital expenditure in eligible states," it added.
States can borrow up to three per cent of the Gross State Domestic Product (GSDP) and are eligible for flexibility of 0.25 per cent over and above this if their debt-GSDP ratio is less than or equal to 25 per cent in the preceding year.
They are further eligible for an additional borrowing limit of 0.25 per cent of GSDP in a given year for which the borrowing limits are to be fixed if the interest payments are less than or equal to 10 per cent of the revenue receipts in the preceding year, the statement said.
"The flexibility in availing the additional limit under either of the two options or both will be available to a state only if there is no revenue deficit in the year in which borrowing limits are to be fixed and the immediately preceding year," it added.
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Bypolls: K'taka Cong Minority Abdul Jabbar chief resigns amid allegations of 'internal conspiracy'
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Bengaluru (PTI): Karnataka Congress Minority Department President K Abdul Jabbar announced his resignation from the post on Saturday, a day after a group of Muslim leaders accused members of their own party of "conspiring" to defeat the official candidate in Davanagere South.
Jabbar, an MLC, was an aspirant for the Congress ticket from the Davanagere South Assembly segment.
"It has been an honor for me to serve as Chairman of the KPCC Minority department and have worked to the best of my ability during assembly elections 2023 and followed by Parliament polls and many such occasions whenever the party needed the minority department and showed results. I have toured the entire state of Karnataka and worked to align the minorities with Congress values and principles. Most of it is available in the public domain," Jabbar has said in a letter to the party.
"Minority voters and minority office bearers are the backbone of our great Congress party and certainly deserve better," he said.
Deputy Chief Minister D K Shivakumar, who is also the Karnataka Pradesh Congress Committee President, confirmed Jabbar's resignation.
"I won't speak about this now, I have got some reports. The Minority President has submitted his resignation. I will verify things, I will seek a report from local leaders after that I will speak," he told reporters in response to a question on internal conspiracy.
A rift within the Karnataka Congress surfaced on Friday, a day after the bypolls to two Assembly constituencies in the state, as a group of Muslim leaders alleged a "conspiracy" by some of their own senior party leaders to defeat the official candidate in Davanagere South.
However, they asserted that despite efforts by some within to project that Congress "betrayed" Muslims, the party candidate Samarth Mallikarjun will win in Davanagere South, the constituency where the community has a significant presence.
They said the party finally named Samarth Mallikarjun as the candidate after considering all factors and taking all Muslim leaders into confidence. Despite this, a massive campaign, including from some within the party, projected the Congress as having "betrayed" the minorities by denying them tickets.
Chief Whip in the Legislative Council Saleem Ahmed, MLAs Rizwan Arshad, Yasir Ahmed Khan Pathan, MLC Bilkis Bano, and other Congress leaders addressed a joint press conference on Friday, claiming an "internal conspiracy".
According to party sources, these Muslim leaders have also complained to AICC and state party leadership, alleging "internal sabotage" in Davanagere South.
Though the leaders did not name anyone, several party sources said their attack was directed at State Housing Minister B Z Zameer Ahmed Khan and Jabbar among others.
Khan, who had openly demanded the Davanagere South ticket for a Muslim candidate, initially stayed away from campaigning in the constituency, citing his Kerala poll responsibilities.
However, he addressed a press meet with Samarth's father and Minister SS Mallikarjun at the request of Chief Minister Siddaramaiah.
Jabbar too had not actively participated in the campaigning, despite hailing from Davanagere.
Bypolls for Davanagere South were held along with Bagalkot on Thursday. The election was necessitated following the death of sitting MLAs Shamanur Shivashankarappa and H Y Meti respectively. Samarth is the grandson of Shivashankarappa.
Muslim disgruntlement appears to be a concern for the Congress in Davanagere South. With 14 of the 25 candidates in the fray belonging to the community, there are apprehensions within the party about a split in votes, which could benefit the BJP.
Given its significant presence in the constituency, the Muslim community strongly demanded the Congress ticket for Davanagere South. Some party factions had opposed giving the ticket to the Shamanur family.
Although the Congress was successful in persuading rebel candidate Sadiq Pailwan to withdraw from the contest, he remained in the fray as the move came after the deadline for withdrawal of nominations.
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