Ktaka8217;s debt almost equal to budget size

Responding to Appaji alias Channabasavaraj Shankarrao Nadagouda Congress during question hour in the Legislative Assembly,Gowda,however,stressed that the state8217;s borrowings are 8220;within permissible limits8221;.

Last week,he presented the 2012-13 state budget facilitating a total expenditure of Rs 1,02,742 crore,an increase of 20.42 per cent over the budget of Rs 85,319 crore in the previous fiscal,exceeding the budget size of Rs one lakh crore for the first time.

In 2011-12 till January this year,the government has borrowed loans to the tune of Rs 5,154.72 crore,Gowda,who also holds the Finance portfolio,said.

According to the Economic Survey of Karnataka 2011-12,advanced estimates of the state8217;s Gross State Domestic Product GSDP at constant 2004-05 prices show that the state8217;s economy is expected to grow at 6.4 per cent and reach Rs 2,97,964 crore in 2011-12 from Rs 2,79,932 crore in 2010-11.

Karnataka8217;s economy is showing encouraging trends due to a strong services sector,which grew by 10.6 per cent in 2011-12. However,there has been a slowdown in the agriculture and allied sectors minus 2.9 per cent in 2011-12 attributable to a decline in crop area due to drought and floods,it said.

8220;The growth rate of the industry sector is estimated to have decreased to 3.6 per cent during 2011-12,largely due to adverse impacts of the overall economic slowdown. The significant growth rate of the service sector from 9.1 per cent in 2010-11 to 10.6 per cent in 2011-12 is a key driver of the growth in the current year8217;s GSDP,8221; the survey said.