The last day of the Karnataka Budget Session on Tuesday had very interesting reply on demonetisation by Chief Minister Siddaramaiah who blamed the Union Government’s initiative on demonetisation has affected cash flow.
Siddaramaiah in his reply to the Budget, said the demonetisation of higher currency by the Centre had seriously affected the cash flow of new notes in the State. He said the Congress and his Government in the State was not, per se, against the demonetisation process but the preparation by the Narendra Modi Government had left the common people in the lurch.
He said in the State the old notes after denomination of Rs 1,000 and Rs 500 currency, discounted at the banks amounted to Rs 52,919 crore. “But the RBI had until January 3, 2017 supplied new notes in denomination of Rs 2000 and Rs 500 to the effect of just Rs 18,665 crore,” he added.
Siddaramaiah said this has put many people in the State to great discomfort and it included common people among the poor, small businessmen, middle class and others. He blamed the Modi Government of not making enough preparations before the demonetisation process that put the people under great trouble that had also led to death of 125 people across the country.
“None of them were black money hoarders as claimed by the Centre that this scheme was meant for besides rooting out corruption and counterfeit currency. So who will answer for the sufferings of common people who went through the tough times during this process” he said.
He said that there was neither commitment nor preparation on part of the NDA Government led by BJP at the centre before it announced the programme in a jiffy on November 8 last year. He said, “We are not against the Centre bringing out black money, root out corruption or strike hard against terror outfits that used the old currency. But none of the black money hoarders lost a sleepless night as Modi claimed during his election campaign in Goa.”
“We have seen media reports where even relatives of Union Minister Sadananda Gowda were suffering due to the currency crisis in a hospital where it was felt most”, he added.
Meanwhile the Karnataka Budget for 2017-18 was passed in the legislative Assembly amid the main opposition BJP staged a walkout in protest against Chief Minister Siddaramaiah declining to write off farmers loan as demanded by them.
The Budget for the next fiscal was adopted by voice vote, while Siddaramaiah, who also holds Finance portfolio, secured the House’s nod for Karnataka Appropriation (Vote on Account) bill, 2017, to authorise payment and appropriation of certain sums from and out of Consolidated fund of the State for services for the next fiscal.
The Vote on Account which amounted to Rs 48,729 crore was also adopted. On GST that will come into effect from July 1, he said the new tax regime was the brain child of UPA Government led by Congress and Karnataka was hopeful of benefiting most from it.
Siddaramaiah’s Budget ahead of 2018 elections is seen as furthering of his appeasement politics to the hilt. For the century old party keeping its power in Karnataka is significant and impacts its future. His Budget, all pleasing one has more appeasement than looking at development.