Karnataka approves enhancing contingency fund limit to Rs 500 crore due to COVID
Bengaluru: The Karnataka cabinet on Thursday gave its approval for "The Karnataka Contingency Fund (Amendment) Bill, 2020" to enhance the contingency fund limit to Rs 500 crore in the wake of the COVID-19 pandemic.
This will be an ordinance making one time enhancement in the limit as the government needs money to make payments immediately,Law and Parliamentary Affairs Minister J C Madhuswamy told reporters after a cabinet meeting.
Under the contingency fund, the government had room to spend upto Rs 80 crore without budget provision.
".. but this time due to COVID-19 as we had to give money to some sections that were in distress like barbers, flower and vegetable growers, taxi drivers, among others, we have decided to increase the limit to Rs 500 crore,"l Madhuswamy said.
"As assembly was not in session and as we had to make payments to those in distress immediately, this decision has been taken," he added.
The cabinet today ratified the administrative approval given to carry out civil and electrical works to install medical gas pipeline with high flow oxygen system at district hospitals, taluk and community health centres coming under Health and Family welfare department in view of COVID- 19.
The minister said about Rs 207 crore is being approved for this purpose.
It also ratified procurement of medical equipment and furniture for public healthcare institutions of the health and family welfare department worth Rs 81.99 crore.
According to the minister, the cabinet has decided to bring in an amendment to section 9 of the Lokayukta act, which mandates that the preliminary inquiry contemplated by Lokayukta or Upalokayuta should be completed in 90 days and charge sheeting should be completed within six months.
Noting that at the Agricultural Produce Market Committee (APMC) cess was being collected, he said as the government had brought in an amendment to the APMC act, there was demand to reduce the market cess.
"So we have reduced it from 1.5 percent to one percent."
Approval has also been given by the cabinet to bring Karnataka Vidyuth Kharkane (KAVIKA) and Mysore Electrical Industries (MEI), which are presently under the control of Commerce and Industries department, under administrative control of the energy department.
Other decisions taken by the cabibinet include deployment and implementation of "e-procurement 2.0" project on PPP at a cost of Rs 184.37 crore and ratification of the action taken to issue orders on March 24 to release interest free loan of Rs 2,500 crore to ESCOMs for payment of outstanding power purchase dues to generating companies.
The cabinet also gave dministrative approval for setting up of an Indian Institute of Information technology at Raichur.
"Under this, we are committed to provide Rs 44.8 crore in four years for infrastructure," the minister added.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Govt's reform trajectory will continue with even more vigour in coming times: PM Modi
New Delhi (PTI): Prime Minister Narendra Modi on Friday said the government's reform trajectory will continue with even more vigour in the coming times as it is committed to boosting 'Ease of Living'.
The prime minister made this observation on a series of posts by the central government on its various reform initiatives.
"Ours is a Government committed to boosting 'Ease of Living' and this thread below gives examples of how we have worked in that direction. Our reform trajectory will continue with even more vigour in the coming times," Modi said.
ALSO READ: Woman hangs self, husband jumps in front of train in Delhi's Vivek Vihar
With the hashtags #ReformInAction & #GoodGovernance, the central government said in the posts that the real test of reform is whether it reduces stress for people and 2025 marked a clear shift in governance, with reforms focused on outcomes, not complexity.
Simpler tax laws, faster dispute resolution, modern labour codes, and decriminalised compliance reduced friction for citizens and businesses alike. The emphasis was on trust, predictability, and long-term growth, showing how well-designed policy can quietly improve everyday life, the posts by MyGovIndia said.
For millions of Indians, tax relief became real. Incomes up to Rs 12 lakh attract zero tax. Middle-class families now retain more of what they earn, giving them flexibility to spend, save and invest with greater confidence, it stated.
It said the Income Tax Act, 2025 streamlined compliance and brought clarity, transparency, and fairness to the direct tax system, making it more taxpayer friendly and aligned with today's needs.
Small businesses can now grow without fear of losing benefits. Higher investment and turnover limits allow MSMEs to expand while retaining access to loans and tax incentives. This encourages scaling up, hiring more workers, and building stronger local enterprises
Rural employment now creates assets, not just wages. With extended guaranteed employment and a focus on village infrastructure, rural labour is now building permanent assets that strengthen communities and livelihoods, it said.
It observed that workers no longer need to navigate dozens of laws as 29 labour laws were simplified into four clear codes covering wages, safety, social security, and relations.
Rights are clearer, compliance is easier, and women benefit from assured maternity and workplace protections, it stated.
The government also stated that GST has been made simpler for businesses and consumers alike.
With streamlined tax slabs, easier registration, automated processes, and faster refunds, the next generation of GST reforms is improving ease of doing business.The impact is clear in record Diwali sales of Rs 6.05 trillion and the strongest Navratri shopping in over a decade, it said.
It also said that businesses can now bring products to market faster.
With rationalised Quality Control Orders, Indian manufacturers face lower compliance costs, improved efficiency, and greater strength in global markets. More room to grow for Indian businesses, the government said in the posts.
The expanded definition of small companies reduced compliance burden and costs, allowing enterprises with turnovers up to Rs 100 crore to focus on innovation and expansion, it added.
