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
Goodman i agree with you,
couple of years ago there was a protest in bangalore opposing the casting of veena malik in dirty picture kannada version. The reasin of protest was not to cast a pakistani actress and replace with india actress but the movie name is dirty picture hahahahah, cant stop laughing
I will go with Kumar and Boom. You people are correct. It is not a public game. We should support for such unbehaviour activity.
The so called BD VHP Etc etc are intolerant except for Sunny Leone
If they call themselves as nationalist, savior of Indian cultural let them demand ban of Sunny Leone films in India and will support them
We are with you. But do it properly
This is definitely a double standard of whoever opposing here.
Because,
First go and stop all type of romantic scenery in your own Kannada film.
Also stop films from any language in Karnataka.
You allow everyone to go to film theatres and watch is happily, with your family, daughters, sons.
For you this is OK to enjoy on the big scree meanwhile when they do it really, you oppose them.
We shall appreciate you if you dare to stop all romantic scene in any film. If you start doing it, we the Muslims will support you and ready to join you.
You need brain to think it and strong heart to dare it.
Well Being a Muslim we never entertain such things.And no Muslim men or Women will go for such things nor we support them.That means we will not Manhandle any one for supporting them.
Let police handle the case.We dont have any rights to pin point others because there are many things which are there to correct within our self.Let us correct them first then will see others.
They will support \PREM CHUMBAN\" but, never \"Kiss of Love\""
LOBY, Just imagine...
If Your own daughters kissing each other in public... Will U like it?
Never ... So dont support such activities which even ANIMALS dont do it openly...
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