BENGALURU: For a cash-strapped Karnataka, Union Finance Minister Nirmala Sitharaman’s Sunday announcement on increasing the borrowing limit for states, in the fifth tranche of the Covid-19 economic package, came as a sweetener. The move brings great relief to Karnataka which is reeling under a severe financial crunch.
“The FM has announced that all sectors are open for private participation and this will provide a new lease of life to institutions that come under the government sector. Above all, the increased borrowing limit for states from 3% to 5% of GSDP will benefit us. States which are distressed due to Covid-19 will be able to revive their economies,” said Chief Minister B S Yediyurappa.
The state also welcomed the Union Government’s decision to enable TV channels to teach children who cannot attend school due to prevailing situation. “The new announcement on not initiating insolvency proceedings against companies and persons who have become defaulters/bankrupt due to Covid-19 will bring peace to the MSME (Micro, Small & Medium Enterprises) owners and will provide one more opportunity for economic revival,” the CM felt.