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
Hahahaha wat a jock reality Manglore....! How could u say Prathima means image ...who said that Prathima means idol or image ...dont be confused and don't confuse others ..... Firstly u have written it in Sanskrit language it clearly says na tasya Prathima asti ...it simply means there is no one equal to god ...! As a Sanskrit student let me clarify you that even Hindu girls names are like shwetha,Prathima ,Jyothi etc .... Prathima means not image or idol it simply means here no other beautiful girl equal to this girl ....prathima means equality...let me clearly tell you another thing swetha means white ...but we can also name a black girl as swetha .....!it simply represents purity as white ..... ..i know how you guys are ...its all written in our bhavishya purana about every era
Instead of complaining they should check the VEDAS first and follow how vedas says to worship . That is the core scripture of hinduism, people are diverted from decades from the scriptures and mindwashed to follow the cheddis version of hinduism which is against Vedas of worshiping one god without the image or idols.
Police, you are right....May be ----Some miscreants have used a Muslim name to disrupt peace like Bhatkal Meat / Nagabana case......Who ever may have done this mischief, his both hands should be cut .....
CD please don't twist the facts. His name is \Jabbar Kudroli\"."
NA TASYA PRATIMA ASTI... It means telling the TRUTH that there is no image of God and the people should stop worshiping the man made objects instead Search for TRUE GOD , who created U ME and all that exists... Did U ever questioned Y vedas asks not to worship Idols...... Please read and understand what is TRUTH and What will happen if U worship the man made objects...
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