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.
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As an old resident of Jubail I know Fayaz Bhai (Owner of Irwa Text) since long time. He is of great nature, soft spoken and nice personality. May Allah rest his soul in peace and give courage to his family to pass this difficult time. Ameen...
As a long resident of Jubail, the news of Fayaz Bhai's demise has shocked and I am sure it would shock many more like me. I know Fayaz Bhai (owner of IRWA Ready Made Garment Shop located in Jubail) since many years. He is of great character and soft spoken personality. May Allah rest his and his daughter's soul in peace and give courage to family members specially to his wife and kids to pass this difficult time...Ameen
Inna lillahi wa inna ilaihi raajiwoon.. may allah forgive their sins n grant them Jannah......such a sad news....
Inna lillahi wa inna ilahi rajihoon. May their soul rest in peace. Ameen
Inna lillahi wahinna raajihoon ..
Innalillahi wa inna ilaihi raji oon.
Saudi has to plan for train facilities for long distance trips.
Driving more than 1200 kms @ speed 120 - 140 and without proper place to rest is not at all easy. this is serious issue. thousands die in road accidents, long drive, accident due to sleepy drivers. some urgent and reckless drivers causing accidents. installing cameras and earning money on speed cars by traffic dept isn't enough. there should be a plan to stop such risky drivings.
train service can save 90% of lives which lost in road accidents in Saudi. Still Saudi isn't caring on this issue. may be they will plan after 25 years same like what they did in case of metro train.
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