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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ramadam went came again again went .He is not seen like you .Pls do not bring religion in all things
hello bhai super pls send u r no. all the best
Rana krishna 10 Cross heghe nagar
hi zaid bro welcome to bollywood industry
May almighty Allah guide all Muslim ummah to the straight path. Ameen.
Holy month of Ramadan, film releasing, so sad!
Br. Zaid, may Allah guide you to be a good and religious muslim. Whatever your physical apperance is, from Allah, it's not of your's. It is like a floating buble on the surface of stream of water. It won't appear for a long, so like we, the human beings. After that, you think of your physical appreance. In this holy month of Ramadan each & every Muslim maximum trying to obey Allah & get pleased by Him. Don't think that the life what we are enjoying is the real life, but our real life really means from the moment of our death. So, fear Allah and refrain from your present decission and put all your efforts to be a good practical muslim and there by teach your dad & whole family about \deen e islam. May Allah bless you forever to make use of your tallents to study, practise & preach the correct deen in its origial shape. By your Brother in Islam. Yaa ayyu alladeena aamanu koo amfusikum va ahleekum naara, this ayath of quran reminds every muslim to safe guard them selves and fellow muslims from the hell fire."
Not necessary all Khans should be a super hit. Look at those Khans like ZAHID Khan, Imran Khan, Ayyub Khan, Kamal Khan and so on and so forth. They are not been seen now.
Good news in Ramadan. The Khan rule is all set to begin in Kannada film industry (sandalwood) like Bollywood. Congratulations to Zaid Khan the future super star of south India. Good that you r starting your film career in Ramadan. that too in last 10 days of Ramadan. wah kya kamal ki batth. masha allah. swarga guarantee...
all khans are ganapathi khans.. severel years back mr zameer ahmed had given ganapati idol to mr kumarswamy as his birth day gift.. that mean this khan also is a devoti of ganapati like bolly wood khan sharuk and salman keep it up
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