Bengaluru, Mar 5: Karnataka is facing unprecedented economic difficulties following a Rs 8,887 crore reduction in the state's share in central taxes, cut in allocation under 15th finance commission and a Rs 3,000 crore hit in GST compensation, Chief Minister B S Yediyurappa indicated on Thursday.
Presenting the state budget for 2020-21 in the Assembly, he said Karnataka's share in central taxes has come down by Rs 8,887 crore in 2019-20 as per the revised budget estimates of the central government. Therefore the state's revenue resources have been reduced. Apart from this, Rs 3,000 crore GST compensation will also be reduced as collection from the GST compensation cess is not as expected, the Chief Minister said. "With all this it has become difficult to reach to reach the 2019-20 budget targets and to manage this situation within the bounds of the Karnataka Fiscal Responsibility Act, an inevitable situation has arisen this year to cut down the expenditure of many departments," he added.
As per the interim report submitted by the 15th finance commission, there is a reduction in the state's share of central taxes to 3.64 per cent compared to 4.71 per cent fixed by the 14th finance commission. In view of this, there will be a reduction of Rs 11,215 crore in the state's share of central taxes in 2020-21 budget, when compared to the previous one.
He, however, noted that the allocation recommendation of the 15th finance commission is limited to one year only and the complete report for the period 2021-22 to 2025-26 will be submitted in October 2020.
"Our government will soon submit a revised memorandum to the commission to set right the loss caused to the state with regard allocation for the year 2020-21 and give more allocation for the remaining period," the Chief Minister said. He also said, when compared to the previous year, there is an increase of approximately Rs 10,000 crore for 2020-21 with regards to government employees salary, pension and interest on government loans, but there is no proportionate increase in resources as compared to committed expenditure. "Due to this reduction of the state's share of central taxes as per the 15th finance commission report and other developments, serious difficulties are being faced in resource mobilisation efforts of the state," Yediyurappa said. "This magnitude of economic difficulties was never faced in the previous years by our state," he added.
However, the state's own tax revenue collection is excellent during this year, he said. As compared to the previous year, there is a growth of 14 per cent in State GST collection. "Based on this, in the new budget, efforts are being made to manage the reduction in the share of central taxes by stabilising the state's own resources more", the Chief Minister said.
Karnataka recorded a gross state domestic product growth rate of 7.8 per cent in 2018-19 and Yediyurappa said for the current financial year it is estimated to be 6.8 per cent.
Comments
I cant comment on this issue coz its thier own will and wish. I wish they should have used this gather to teach brotherhood / respect to every indian citizen / non voilence and love. Organisers should preach good things to youngsters without getting influenced from any political or communal party. Also, they should not force any one to sing Vande mataram as this is not compulsoryu as per our constitution. Jana gana mana is our national anthem and not vande mataram. No objection in singing vande mataram by anyone, but dont force others. Show your patriotim by loving and respecting all indians and religions. This is fundamental right of every citizen based on constitution.
Na TASYA Pratima ASTI... (There is no image of God) Those who support this, should understand that U are worshiping the motherland. There is no image of God and U make the motherland as God and make a mock out of God... We respect the motherland but we will never worship it as a God... God is the creator of the motherland ... Bow only to the CREATOR of all that exists including the motherland.
It will be very nice to see the big group singing Vande Maatharam..good luck to the organizers
Congrats to all the participants
People can not forcefully to make a follower or believer. Should inspire them, than they will do themselves. Thanks to the team who worked behind this wonderful programme
Indtead of imposing nationalism through film theatres, do something like this. Many people will participate volunterly and it may help to inspire many
Good one. congrats entire team
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