State lacking financial sustainability?

State lacking financial sustainability?
The Hindu

HUBLI: Does the State lack financial sustainability which comes in the way of giving guarantee for any loan?

Yes, if one goes by what S.R. Morey, Minister for Municipal Administration, says. The State Government is not in a position to stand guarantee for anything beyond the stipulated limit, Mr Morey said while addressing presspersons here on Monday. It is not only the Government, but also the Hubli-Dharwad Municipal Corporation, according to him.

Mr. Morey made this disclosure to explain the inability on the part of the Government in clearing Rs. 176 crores for augmenting drinking water supply to Hubli and Dharwad.

Asked about the promise made to the IT companies on the development of infrastructure, he said The Government had made the announcement but it had to be cleared by the Finance Department. However, he denied that the Chief Minister's promise in this connection is hollow.

Mr. Morey said the sustainability position keep changing every year. "Lets wait for the next assessment," he added.

Mr. Morey denied the allegation that only Hubli and Dharwad have been singled out for such treatment. What is the use of the Government giving clearance for the project, if it is not cleared by the Finance Department? Mr. Morey asked.

Mr. Morey said the Government has received proposals from some private companies for financing the water supply scheme for Hubli and Dharwad. Asked if the Government aimed at privatising water supply, Mr. Morey said it is only an alternative and no decision has been taken as such.

Mr. Morey said it should be possible to supply water daily for the people of Hubli and Dharwad in the next two years.