Karnataka Chief Minister BS Yediyurappa on Monday said the ongoing lockdown has resulted in deep financial trouble for the state. CM Yediyurappa held a meeting with the state cabinet Chief Secretary Vijay Bhaskar on Monday to discuss measures to be taken to tackle the financial crisis.
Yediyurappa said that the cabinet had decided to auction around 12,000 corner sites (sites that are located at the corner of a road) owned by the Bengaluru Development Authority (BDA), to mobilise funds to tackle the situation. He also said that vacant sites owned by various urban local bodies in the state will also be auctioned.
"The COVID-19 situation has thrown our state into deep financial trouble and there is a need to to find ways to overcome the present financial crisis. By auctioning corner sites in Bengaluru, we are expecting to mobilise around Rs 14,000-15,000 crore. BDA is in the process of making the necessary arrangements for the same. We will sell these properties only if the market value is good,” he added.
Yediyurappa had said while presenting the budget in February this year that the state government was in financial straits after the allocation to Karnataka was reduced, with the implementation of the 15th Finance Commission’s recommendations. The state was already facing a financial crisis after the floods in August 2019 ravaged several parts of the state, leaving lakhs of people homeless.
When asked about whether the lockdown will be extended, Yediyurappa said that the state government was awaiting guidelines from the Centre regarding the implementation of lockdown for the next two weeks. He also said that there were discussions on relaxing norms for the sale of liquor through Mysore Sales International Limited, and a decision would be taken on Tuesday.
He further states that Rs 1,000 crore is available with the state government to upgrade the facilities at Rajiv Gandhi Health University. In addition, Rs 45 crore has been released to compensate paddy farmers in Raichur and Koppala districts in the wake of the hail storm that destroyed the crops in March.