Staff Correspondent

‘International assistance has put local bodies in debt trap’

Kendra says Government has not taken concrete steps to remove backwardness

‘Burden on the local bodies is being passed on to public in the form of taxes’

Raichur: The Hyderabad Karnataka Janandolana Kendra has urged the State Government to avoid taking assistance from the World Bank or the Asia Development Bank (ADB) and utilise its own resources for the development of the backward districts in the Hyderabad Karnataka region as per the recommendations of the D.M. Nanjundappa committee.

Addressing a press conference here on Sunday, president of the Kendra Raghavendra Kustagi said that the High Power Committee for Redressal of Regional Imbalances headed by late Mr. Nanjundappa had recommended the State Government should invest Rs. 16,000 crore in phases for improvement of the backward districts in the Hyderabad Karnataka region in the State.

“Though the Government had approved the committee’s recommendations, it so far has not able to take concrete steps in removing the backwardness in the identified regions. The Government should make adequate fund allocation for development, he said.

Mr. Kustagi said, however, the Government had not been serious in implementing the committee recommendations. Instead, it had washed its hands off the issue by encouraging local bodies to raise loans from the World Bank and the ADB for improving the facilities. In the past, many local bodies in the State had raised loans from the World Bank and the ADB for implementing developmental schemes, but in many instances such funds were misused, he said. “Now many local bodies in the State were in a “debt trap”, which had forced them to pass on the burden to the public,” Mr. Kustagi said.He informed that the kendra would organise a symposium here on July 20 to create awareness among the public on the ill-effects of implementation of schemes financed by international finance organisations.

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