Karnataka Bengaluru Coronavirus News September 3 Highlights: The Karnataka government Wednesday decided to choose the first of the two options offered by the Centre of borrowing to meet the shortfall in the goods and services tax (GST). As per this option, the State will be eligible for a total compensation of Rs 18,289 crore.
Chief Minister B S Yediyurappa, who is also the Finance Minister for the State, informed the decision after discussions held with officials of the Finance Department.
“After the evaluation of the two options, it is felt that option one would be more beneficial to the State’s finances. This would help the State in augmenting its revenue in the present financial year,” the government clarified in an official statement. It said this would help the State augment its revenue in the 2020–21 financial year.
However, the government’s decision is contrary to the the Opposition Congress asking the BJP government not to accept the proposal to borrow.