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
I am sure this Dargah chief will allow shetering cows in his Dargah to make Hindus happy. let this Muzawar also allow cows to stay in his house as guests which will definately give him lots of ad and will be famous.
Mone... Moodbidri.... What do you say about this statement from The Soofi Dargah worshiper....
If prophet is against beef....good...but why should muslims protect them????????
Dhurga is also against Islam...could you stop cheating????
Who will believe even if Muslims are protecting cows,
The trend is, if Muslim have a cow for Milking purpose, Bajrangis will attack on the pretext of cow slaughter
If Muslim is having a cow for agriculture purpose, Banjrangis will attack on the pretext of cow slaughter
Cow is not the cause, but, they just need a reason to attack Muslims,
If the Cow problem is solved, then they will come up with Bakri reason, then Murgi reason, then Machli reason, Its never ending story till RSS is alive
This program is sponsored to you by...modees sangheez.....what has the mushriq Sarah chief to say about baqarah and adhaa?.....
ohh my god this person doesnt know Prophhet SAW said there is no place for Shirk and it is Haram and this guy in his life he is done full of Shirk, Mr. Zainul you are not a right person to give any commmnts without Hadith Quote, better you Shut your mouth
there is no impotant place for dargha in islam
Hey dargaparasthi
Muslims should not protect darghas,
prophet is against darghas.
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