Karnataka to borrow Rs 33,000 crore to cope with revenue loss
Bengaluru: The Karnataka government on Tuesday decided to borrow Rs 33,000 crore to cope with the revenue loss owing to COVID-19 pandemic situation and take up development works, Law and Parliamentary Affairs Minister J C Madhuswamy said.
The state cabinet meeting decided to amend the Fiscal Responsibility Act to increase its borrowing limit from three per cent to the five per cent of the GSDP, utilising the provision proposed by the Centre, he said.
"The centre this year has increased the borrowing (limit) up to 5 per cent of GSDP due to COVID. Hence, we have decided to change the state Fiscal Responsibility Act to increase our borrowing from three per cent to five per cent," Madhuswamy told reporters.
"After the amendment, the state will be able to borrow Rs 36,000 crore. We have decided to borrow Rs 33,000 crore to start development works," which had been impacted due to severe revenue loss following the COVID-19 pandemic, he added.
When asked why Karnataka went for borrowing when several other states were demanding that Centre should borrow and give it to the states, Madhuswamy said such demand was made at the GST Council meeting recently.
He said the state's demand for Rs 11,000 crore of its share on GST remains and it will not compromise on that.
Madhuswamy clarified that the two per cent increase in the borrowing was only a one-time measure that too in view of the COVID situation.
He conceded that the increased borrowing will be a burden on the state. "Because we are in such a situation that we are forced to borrow," he added.
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India dismisses report of Musk joining Modi-Trump call; says it was between 2 leaders only
New Delhi (PTI): India on Saturday rejected a media report that said billionaire Elon Musk joined a phone conversation between Prime Minister Narendra Modi and US President Donald Trump earlier this week.
External Affairs Ministry spokesperson Randhir Jaiswal said Tuesday's conversation was between the two leaders only.
The New York Times, quoting unnamed US officials, reported that Musk participated in the call between Trump and Modi, adding it was an "unusual appearance" by a private citizen on a call between two heads of state.
"We have seen the story. The telephone conversation on March 24 was between Prime Minister Narendra Modi and President Donald Trump only," Jaiswal said.
"As has been stated earlier, it provided the opportunity for exchange of views on the situation in West Asia," he said.
In its report, the New York Times said it is "unclear" why Musk was on the call or whether he spoke.
Our prime minister only spoke to Trump and there was no one else who spoke to the PM, people familiar with the matter said.
They suggested that it is for Washington to clarify if somebody else was in the room or listening to the conversation.
The New York Times said Musk's participation in the phone call signalled a reconciliation between the billionaire and Trump.
The two had fallen out last year following Musk's exit from a government task force charged with slashing the federal workforce.
The US president had initiated the phone call with Modi to discuss the West Asia crisis.
It was the first conversation between the two leaders since the West Asia conflict began on February 28.
In the conversation, Modi underlined the importance of ensuring that the Strait of Hormuz remains open, secure and accessible, noting that it is vital for global peace, stability and economic well-being.
