Karnataka faces Rs 12,000 crore shortfall, plans to cut borrowing, revise subsidie

Facing a 12,000 crore shortfall, Karnataka’s govt is cutting down on borrowings. With nearly 90,000 crore spent on subsidies and guarantee schemes, the state’s finances are strained. The government is tapping into cash-rich state boards and corporations to fund development and is implementing inter-corporate deposit schemes to support energy sectors and joint ventures for IT services facilities.