CM Siddarmaiah to declare gifted luxury watch as state asset

Bengaluru, May 2: The Centre’s classification of districts created confusion in Karnataka as the state’s own categorisation deviates significantly from the health ministry’s list.

For instance, the Centre put the number of districts in the red zone in state at three, while the state Covid-19 war room puts it at 14. Bengaluru Urban and Mysuru figure in the red zone in both lists. While Bengaluru Rural with zero active cases on May 1makes it to the Centre’s red-zone list, it is in the orange zone according to the state.

In addition to these two, the state classifies Belagavi, Kalaburagi, Vijayapura, Bagalkot, Mandya, Bidar, Dakshina Kannada, Chikkaballapura, Dharwad, Gadag, Tumakuru and Davanagere as red-zone districts.

State Covid war-room authorities said they would take a look at the Centre’s criteria for classification and take a call. Besides, incharge Munish Mudgil pointed out that states are allowed to make additions to the red and orange zones. According to the Centre’s list, Karnataka has 13 districts in the orange zone and 14 in the green zone.

Sudan said, “the districts were earlier designated as hotspots or red zones, orange zones and green zones primarily based on the cumulative cases reported and the doubling rate. Since recovery rates have gone up, the districts are now being designated across various zones duly broad-basing the criteria.

This classification takes into consideration incidence of cases, doubling rate, extent of testing and surveillance feedback. A district will be considered under the green zone if there are no confirmed cases so far or if there is no reported case in the past 21 days.”

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.

Mangaluru, May 26: Days after the government of India approved the use of chartered flights for the repatriation of Indians stranded across the world amidst covid-19 lockdown, two NRI entrepreneurs in Saudi Arabia have offer to bear the cost of repatriation if they get formal green signal to repatriate stranded Indians from Dammam to Mangaluru International Airport before June 5.

Althaf Ullal and Basheer Sagar, the two Kannadiga Directors of Al Khobar-based Saqco, have made this offer in a letter written to Karnataka Chief Minister BS Yediyurappa and Union Civil Aviation Minister Hardeep Singh Puri.

The duo have assured that their company will bear the cost of the first chartered flight from Dammam to Mangaluru if the government paves way for its operation by June 5. 

It is learnt that many private airliners have come forward to operate chartered flight and are waiting for final clearance from the government. It will cost approximately Rs 45 lakh to hire chartered flight with 180 capacity from Dammam to Mangaluru. 

Pregnant women, medical emergency cases, senior citizens on visit visas, those who lost jobs due to lockdown among other stranded Indians will be given priority in this flight, they said.

"Our company will completely bear this cost. Passengers only need to bear the cost of institutional quarantine after reaching Mangaluru," they have clarified.