Bangalore: Karnataka Chief Minister S M Krishna on July 11 refuted an Opposition charge that the government has imposed a ban on treasury payments.

Reacting sharply to the allegations by opposition in the State Assembly that the government has directed treasury not to make payments, he said "there is no ban on payments by treasury".

Krishna also rejected charges that development works have come to a grinding halt due to financial crunch, saying, "Nothing is stopped."

The Chief Minister, who also holds Finance Department, said he would make a statement on the financial position of the state and on development works either on July 15 or 16.

Earlier, Opposition Bharatiya Janata Party (BJP) leader Jagadish Shettar and Janata Dal United (JDU) group leader P G R Sindhia, referring to the agitation launched by contractors to protest against the delay in making payments to them by the government for the works executed, alleged that the government has imposed ban on treasury payments.

As a result of the ban, development works have come to a halt in the state, they alleged. Sindhia also demanded the resignation of Krishna owning responsibility for the "financial crisis".

PTI