Saturday, Feb 08, 2003
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Karnataka
By Our Special Correspondent
Addressing a press conference here, Mr. Krishna, however, did not quantify the shortfall in resource mobilisation, particularly commercial taxes, and the exact cut in the Plan size as "guesswork in the cut in the Plan size and resource mobilisation may go haywire". He said a review of resource mobilisation would be conducted soon which would give a more accurate picture of the developing situation. The cut in the Plan size also depended upon the Centre's devolution of funs to the States. An all-out effort was being made by the State Government to boost resource mobilisation in key sectors, including commercial taxes, excise, and stamp duty. Mr. Krishna said that was a shortfall in resource mobilisation in the commodity sector and this was due mainly to the global recession and the impending introduction of value added tax (VAT), which will into effect from April 1 this year. He was optimistic that resource mobilisation would pick up in February and March to enable the Government to meet the Plan targets. Replying to a query, the Chief Minister said the financial situation of the State governments would improve considerably if the demand to delegate powers to tax the service sector was conceded by the Centre. "The Central Government gives hundred reasons for not allowing the State governments to impose taxes on the service sector, but all these reasons are not convincing."
Professional courses
To another question, Mr. Krishna said he was hopeful that the current talks with the managements running private professional colleges, which were at an advanced stage, would result in a positive breakthrough and ensure that the interests of meritorious students were safeguarded. The Chief Minister said the Government's approach in the light of the Supreme Court judgment on the matter was to continue with the Common Entrance Test (CET) for students wanting to pursue medical and engineering courses. The talks with the private managements was aimed at ensuring this. Asked whether the Government would file a review petition in the Supreme Court seeking a review of its order, Mr. Krishna said: "It is too early to spell out our strategy and, right now, we are pursuing the line of conciliation and hope to arrive at an amicable solution." Asked how long the Government would wait for the private managements to fall in line with its thinking on the issue, Mr. Krishna said the Government would wait as long as it was necessary before considering any other course of action. He indicated that the 2003-04 State Budget would provide an atmosphere conducive to growth and development. He said the energy subsidy for the agricultural sector would continue. However, he failed to say whether the present level of subsidy would continue. "I do not want to quantify the subsidy for farmers." The power situation in the State was bad and the coming two months would be crucial, he said. On the Humnabad byelection, he said the outcome would not be a reflection on the performance of the Government. The Home Minister, Mallikarjun Kharge, the Public Works Minister, Dharam Singh, and the Labour Minister, Qamar-ul-Islam, were present.
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