BENGALURU: The State government’s financial situation — which has posed a challenge for the past two quarters — and ways to tide over it, will be one of the main issues that will figure at the next cabinet meeting on Thursday. The government is expected to prune grants and developmental outlays to many constituents who are seeking funds. Excise minister H Nagesh told TNIE that the reopening of clubs, bars and restaurants and pubs on Tuesday would directly result in generation of jobs. Many of the employees who had gone back home would now return to work.
Asked about the expected revenue, he said reopening of this sector is expected to ease up the State’s financial condition. Economist and former director, ISEC, Prof RS Deshpande said, “The options before the government are many. It can opt for public borrowing by going in for bonds with a lock-in period, it can increase non-tax revenue sources like selling sites or going in for new layouts that will fetch money, it can make the process of stamps and registration easier so that pending registrations can be completed and earn money for the government.
It can also increase certain cesses and taxes, on commodities like petroleum, or look at borrowing from international agencies like the World Bank, but through the central government, for ongoing infrastructure projects.’’ The government is exploring all options, as one source told TNIE, “The government has a week’s time to consider which option to exercise.’’At several meetings, Chief Minister B S Yediyurappa has expressed his opinion on prudence in matters of fiscal discipline, and is expected to take a similar line at the upcoming cabinet meeting.