Karnataka faces financial crunch as debt zooms 255% in fiscal 2018-19

News Network
September 23, 2020
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Kumaraswamy

Bengaluru, Sep 23: Karnataka is facing a financial crunch, evident from a record 255 per cent increase in its net debt for fiscal 2018-19, an official said on Wednesday while citing a Comptroller and Auditor General (CAG) report.

"In its state finance audit report, the CAG red-flagged that Karnataka's net debt was Rs 17,766 crore in 2018-19 financial year, a whopping increase of 255 per cent over the 2017-18 fiscal," said the report, which was tabled in the state legislature on Tuesday.

A 6-day Monsoon Session of the legislature began on Monday after it was delayed due to the Covid-induced lockdown and surging virus cases across the southern state.

To meet the growing expenditure, the previous Janata Dal-Secular (JD-S)-Congress coalition government borrowed heavily -- 55 per cent of the debt from the open market, 27 per cent from public account, 6 per cent from national social security fund and 5 per cent from the central government.

A fractured verdict in the May 2018 Assembly elections forced the outgoing Congress to ally with the JD-S to form the coalition government, with HD Kumaraswamy appointed the Chief Minister on May 23, 2018.

The resignation by 17 rebel legislators, including 14 from the Congress and 3 from the JD-S in July 2019, however, led to the fall of the 14-month-old coalition government on July 26, 2019 after Kumaraswamy lost the trust vote in the Assembly for want of a simple majority.

Holding the finance portfolio, Kumaraswamy presented two Budgets in July 2018 for fiscal 2018-19 and February 2019 for fiscal 2019-20.

The CAG found that an expenditure of Rs 2,901 crore was wrongly classified by oversight, while the supplementary provision of Rs 1,319 crore was unwarranted.

"The total provision for the fiscal under review was Rs 2.45 lakh crore and expenditure Rs 2.2 lakh crore, while Rs 25,139 crore remained unspent," said the report.

Reappropriation of funds in 27 cases was not judicious, resulting in excess provision.

Noting that the Supplementary Budget was also not properly assessed to be fiscally neutral, the report said it failed to curtail expenditure.

The report advised the BJP government to ensure adjustment of abstract contingent bills in the stipulated time.

"The tax revenue growth rate decreased to 11.13 per cent in 2018-19 from 12.1 per cent in 2014-15," the report added.

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News Network
December 5,2025

Mangaluru: In a significant step to curb online hate and intimidation, Mangaluru City Police have registered a suo motu case against multiple Instagram accounts accused of circulating alleged provocative and threatening content.

While monitoring social media activity on Tuesday, Kankanady Town PSI Anitha Nikkam identified the Instagram handle ‘team_targetttt_900’ for posting a hate message alongside images of lethal weapons. Another account, ‘team_nagara_900’, allegedly shared a threatening post targeting activist Bharath Kumdelu, tagging additional pages such as KARAVALI-OFFICIAL.

Several other accounts — including ‘immu_bhai.fan’, ‘target_boy_900’, ‘kings_of_manglore’, ‘team_target_boys.900’, ‘arshad_mangalore’, ‘target_ka19_ullal’, ‘team_target__’, ‘troll_tigersz_900’, ‘tr_group_900’, and ‘team_target_900’ — are also under scrutiny for spreading similar inflammatory material, police said.

Authorities have urged citizens, especially young social media users, to report suspicious pages and avoid engaging with groups that glorify violence or threaten individuals. Online hate can quickly escalate into real-world harm, and police stress that sharing or promoting such content can attract legal consequences.

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News Network
December 2,2025

Puttur: The long-cherished dream of a government medical college in Puttur has moved a decisive step closer to reality, with the Karnataka State Finance Department granting its official approval for the construction of a new 300-bed hospital.

Puttur MLA Ashok Kumar Rai announced the crucial development to reporters on Monday, confirming that the official communication from the finance department was issued on November 27. This 300-bed facility is intended to be the cornerstone for the establishment of the government medical college, a project announced in the state budget.

Fast-Track Implementation

The MLA outlined an aggressive timeline for the project:

•    A Detailed Project Report (DPR) for the hospital is expected to be ready within 45 days.

•    The tender process for the construction will be completed within two months.

Following the completion of the tender process, Chief Minister Siddaramaiah is scheduled to lay the foundation stone for the project.

"Setting up a medical college in Puttur is a historical decision by the Congress government in Karnataka," Rai stated. The project has an estimated budget allocation of Rs 1,000 crore for the medical college.

Focus on Medical Education Department

The MLA highlighted a key strategic move: requesting the government to implement the hospital construction through the Medical Education Department instead of the Health and Family Welfare Department. This is intended to streamline the entire process of establishing the full medical college, ensuring the facilities—including labs, operation theatres, and other necessary infrastructure—adhere to the strict guidelines set by the Medical Council of India (MCI). The proposed site for the project is in Bannur.

Rai also took the opportunity to address political criticism, stating that the government has fulfilled its promise despite "apprehensions" and "mocking and criticising" from opposition parties who had failed to take similar initiatives when they were in power. "Chief Minister Siddaramaiah has kept his word," he added.

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News Network
December 7,2025

Mangaluru, Dec 7: A 34-year-old fruit and vegetable trader in Mangaluru has reportedly lost ₹33.1 lakh after falling victim to an online investment scam run through a fake mobile app.

Police said the scam began in September, when the victim received a link on Facebook. Clicking it connected him to a WhatsApp number, where an unidentified person introduced a high-return investment scheme and instructed him to download an app.

To build trust, the fraudster asked him to invest ₹30,000 on September 24. The trader soon received ₹34,000 as “profit,” convincing him the scheme was genuine. Over the next two months, he transferred money in multiple instalments via Google Pay and IMPS to different scanner codes and bank accounts shared by the scammers. Between September 24 and December 3, he ended up sending a total of ₹33.1 lakh.

When he later requested a refund of his investment and promised returns, the scammers demanded additional payments, claiming he needed to pay a “service tax” first. Even after he paid a small amount, no money was returned, and the scammers continued pressuring him for more.

A case has been registered at the CEN Crime Police Station.

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