Karnataka's Covid fund spike: From Rs 500 crore to Rs 2,500 crore

Contingency allocation increased second year in a row; Cabinet clears proposal, to pass ordinance

Published: 22nd June 2021 06:19 AM  |   Last Updated: 22nd June 2021 06:19 AM   |  A+A-

Chief Minister BS Yediyurappa arrives at Vidhana Soudha for the cabinet meeting, in Bengaluru on Monday

By Express News Service

BENGALURU: For the second consecutive year, the Karnataka Cabinet has decided to enhance the contingency fund because of the Covid pandemic. The cabinet on Monday agreed to pass an ordinance to increase the fund from the existing Rs 500 crore to Rs 2,500 crore.

The contingency fund facilitates expenditure that has not been accounted for in the budget during a fiscal year. Home Minister Basavaraj Bommai, who is also the Minister for Parliamentary Affairs, said an amendment to the Karnataka Contingency Fund Act, 1957 will be passed through an ordinance to enhance the limit.

“The contingency fund was set at Rs 500 crore in the budget. But due to Covid management costs, it is being enhanced to Rs 2,500 crore,” Bommai said.The Karnataka cabinet last year had enhanced the contingency fund limit from Rs 80 crore to Rs 500 crore, citing the Covid pandemic. The new ordinance will facilitate additional funds to be directed towards the economic relief package, announced in three instalments over the last few weeks by CM BS Yediyurappa.

Apart from financial aid to various sections of people, like ASHA workers, auto and cab drivers, farmers, barbers, construction workers etc, the package will also include compensation of Rs 1 lakh to families that have lost an earning member to Covid. The amendment will be a one-time move to mobilise funds to foot Covid expenses.

Karnataka will soon have a new policy on management and usage of water within the State. The cabinet on Monday approved setting up of a cabinet subcommittee to draft the new policy. Home Minister Basavaraj Bommai said the new policy will include guidelines for water consumption for agriculture, industrial use and drinking water allocation. He made it clear that the new policy will have nothing to do with interstate water disputes but will be limited to usage and management of water within the state. 


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