GULBARGA:Chief Minister S Yeddyurappa has sought special financial package from the Central government in its ensuing general budget to meet the ill-effects of the global recession on the State exchequer and to keep the pace of development.
He would soon call on the Prime Minister and the Union finance minister to press for his demand.
Speaking to reporters after taking part in the Vikasa Sankalpa Utsav here on Friday, he said that the State has been badly affected due to global economic meltdown, and it would be imperative for the Centre to come to the aid of the State.
He, however, did not quantify the financial loss due to recession. The Chief Minister pointed out that it has become difficult for the State to maintain the tempo of industrial development as it was not in a position to dole out incentives and subsidies for new industries.
“Though we will make all-out efforts to plug pilferage and step up resource mobilisation, it will not be enough to counter the effect of recession. Depending on the needs of each State the Centre should announce special fi nancialpackage in its budget for 2009-10,’’ Yeddyurappa demanded.
He pointed out that after the reduction in fuel prices, the benefits of reduced price was not passed on to the States. Due to global recession industries have their own demand to set up their units.
The State has to provide all the required infrastructure for establishing new industries besides sustaining the existing ones. Funds
Yeddyurappa also sought centre to bear 50 per cent of funds necessary for removal of regional imbalance in Karnataka as recommended M Nanjundappa Committee report on regionalimbalances. Stating that as per the report 114 backward, more backward and most backward taluks have been identified in the State, the Chief Minister said, accordingly the State on its own was implementing the report.
The Chief Minister appealed to MPs and Central ministers from the State to pressurise the centre in this regard. He expressed his dismay over the continued neglect of Karnataka visa-vis railway development.