India News | Karnataka Govt Tables Second Supplementary Estimates for over Rs 3,500 Crore

Belagavi, Dec 17 (PTI) The Karnataka government on Friday presented the second installment of supplementary estimates for FY 2021-22 aggregating to Rs 3,574.67 crore relating to "new services" in the Karnataka Assembly.

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While tabling the second installment of the supplementary estimates for the current fiscal, the government said the estimates relate to advances sanctioned from the contingency fund after the 2021-22 supplementary estimates-I installment was placed before the legislature in September.

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The supplementary estimate also relates to additional or supplementary grants or appropriation required during the current year and accounting adjustments.

The introductory note said the net outgo from the consolidated fund is Rs 3,418.59 crore. Rs 599.03 crore is covered by the central assistance.

"Hence, net cash outgo is Rs 2,819.56 crore. This amount will be met through proper reprioritization of expenditure," it said.

The government had earlier sought additional funds of Rs 10,265.33 crore with a net cash outflow of Rs 6,367.19 crore through the Supplementary Estimates-I installment.

Meanwhile, the mid-year review of state finances, which was also presented in the assembly on Friday, said the total expenditure is estimated at Rs 2,31,642 crore including revenue expenditure of Rs 1,87,405 crore and capital expenditure of Rs 44,237 crore.

The total receipts is estimated at Rs 1,72,402 crore, which includes revenue receipts of Rs 1,72,271 crore and non-debt capital receipts of Rs 131 crore.

It also said that due to COVID-19 and reduction in tax devolution, the state resources were reduced compared to the budget estimates of 2020-21. This resulted in revenue deficit.

Understanding the situation, the Government of India allowed the state to borrow four per cent of Gross State Domestic Product for the current fiscal, the government note said.

"Accordingly, the state government has made suitable amendments to Karnataka Fiscal Responsibility Act, 2002," the review said.

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