Disappointing Budget -CM’s reaction

Terming the Union budget as “disappointing”, Karnataka Chief Minister B.S. Yeddyurappa on Friday expressed unhappiness over the Centre not paying heed to the State’s request for a farm loan waiver in flood-hit areas and the assistance for Bangalore infrastructure development.

“The 2010-11 Budget is disappointing. It will further burden poor and middle-class,” Yeddyurappa told.

He said the state’s requests for a waiver of farm loans in regions devastated by floods last year, Rs. 8500 crore for infrastructure development in Bangalore and Rs. 8000 crore for redressal of regional imbalance had not been considered.

Noting that 5.5 per cent fiscal deficit is higher than the stipulated four per cent, Yeddyurappa said the Centre has “failed” to control it and maintain fiscal discipline.

The cut in fertiliser subsidy would lead to increase in price of fertiliser, resulting in an adverse impact on growth of agriculture. The Centre has failed to come out with effective programmes to boost agriculture growth and to take effective steps to control inflation, he charged.

The hike in cement prices would hit construction sector.

However, Yeddyurappa said increased allocation for infrastructure and rural development among others is welcome, as also the hike in the State’s share of central taxes by 1.5 per cent which is expected to give Karnataka an additional share of Rs. 1,500 crore.