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
@#14 Mohammed Saleem, Sharjah,
You have a block in your mind blocked the of evil. Once made a shahadah the evil enters your heart and mind to go to Madrassa.The Madrassas are teaching against Hindus, Christians, and Jews. Are you kidding, Islam
After many messengers were sent... and conveyed the message of ONENESS of God... ALLAH sent MUHAMMED pbuh as the last and final MESSENGER to the people to convey the same one MSG of WORSHIP the creator not his CREATION .. WE should not worship EVEN prophet Muhammd pbuh...
ALLAH Revealed QURAN to Muhammad pbuh as BIBLE for JESUS and TORAH for MoSES...
Mohammed was not the first but he was the last messenger of ALLAH... Hope this might help dear PREM PRASAD unless YOUR HEART is not HONEST to know about the CREATOR who created all that exists.....
BE sincere and honest, ALLAH guides those who truly look for him.
Prem Prasad
If you don't understand something it doesn't mean it not exist.
Islam means Peace aquired by submitting your will to God. .
It exists right from beginning
Prem Prasad.
Islam means Peace aquired by submitting our wills to God.
And it exists from beginning of mankind.
If you don't understand something. It doesn't mean it don't exist
Islam is not just Arabic word. It means submission to God and obey his commands. Adam, Moses, Jesus and Mohammed peace be upon all submitted their will to God. Islam exist from beginning. Don't make God so cheap. He is lord for all from beginning till end. No other like him. Don't make image of God and compare to anything
@#11 Mohammed Saleem, Sharjah
You have to argue without logic in a circular manner. World was unknown to the word Islam Prior to 1400 or prior to 1st century. Why did you threw out the 10 commandments of God from O.T. Where was the Term Allah prior t
The only religion is accepted in front of God is Islam.
Islam means total submission to God.
To live according to commandments of God, which he sent time to time in each area through his messengers.
Islam started from first person in earth prophet Adam PBUH.
What was the name of your God prior to 1st century. The word Islam was not prevalent prior to 1400 years. Name Islam prevailed after Arabic was invented in the 1st century. III caliph Uthman is the editor of Quran. He destroyed all the manuscripts given by so-called Gabriel. To which place you were facing and praying prior to 1400 and had you been fasting prior to 1400 years where there was no month called Ramadan. The last prophet to humanity was Joseph Smith of the Mormons religion. 124000 prophets are illusions including false prophets. Don't tell me to read Quran. No need to read any book if a person is living a righteous life.
@Prem Prasad. Islam was not created 1400 years ago. It is a big mis-conception among many non-Muslims. 1400 years ago it was the final installment of the series of prophets (peace be upon them all) and revelations sent to human being by Almighty God. We b
Dear Brother Ahmadi / Asi...
Please make following Dua, U will understand everything...
O ALLAH, make what you teach me beneficial, teach me what is beneficial, and increase me in knowledge...
Allaahumma-nfanee, bimaa allamtanee, wa allimnee maa yanfaunee, wa zidnee ilmaa (Attirmidi # 3599)
Ramadan is the month in which MUSLIMS all around the WORLD fast for 29/30 days from dawn to dusk.
Fasting is the fourth pillar of ISLAMIC FAITH
The fast is an act of deep personal WORSHIP to get closer to ALLAH (God Almighty)
It is the month in which the QURAN was revealed to Prophet Muhammad pbuh.
QURAN chapter 2 Verse 183 says : O believers! The fast has been prescribed upon YOU just as it was prescribed for the followers of the Prophets BEFORE YOU, So that YOU may attain TAQWA (Piety)
Prophet Muhammad pbuh said, ALLAH said \All the deeds of man are for himself except for FASTING, which is for ME and I shall reward it Myself...
May ALLAH accept our Fasting and reward as he promised... ALLAHU AKBAR...All praise is to ALLAH, the Lord of all that exists.."
ASI DUBAI sawal acha hi but unfortunately till date no one answered for this question from last 10-15 years.
Where the Moon is sighted ???
Arabic was invented in the 1st century. Prior to 1st century to wich place you were facing and praying. Prior to 1400 which book you were reading and what was the name of your God before the 1st century.
Happy Ramadan and may Allah (SU) Bless us all in this Holy Ramadan....
\Allahumma ballighna ramadhaan\"
O allah makes this ramadhan easy for us\"
Join us to say aameen...."
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