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
Haha #1...RSS policy don't work ?,...then you are madrasa illetarate only ..sumne 30 days English speaking coarse kalsi ..love jihad ge train madiro product antha gottagutte ....we from RSS at very rapid rate penetrating Kerala and not one or even 10 killings deter us....we love our motherland to the core ....sangh will give befitting reply to their opponents in their own language ....
I think the cheddis have read the history of Zioist..of their deception and still wants to follow that way and deceiving many youths to take their side without considering the results...
Zioist fooled the people on World war by supplyng the weapons to both sides. and also fooled the countries thru bankers....
Russians and chinese recognised them and oppose their stratergy.
india has recognized it but cheddis controlled govt. will take the indians into their deception .. This is the REALITY.
Many families have lost their sons and the family members are in suffering...
And people will come to know only when it reaches their house holds.
If Your heart recognised the LIARS, better to start distancing from the LIARS. if not You will fall to the trap of their deception
Killers feeling the HEAT...
Some young life lost
and the HATERS are playing their games of blaming
the parents and the family of the killed will be suffering...
When can WE honest people understand this game of Hatred.
Why cant WE support openly to those who are against Hatred..
come lets join and voice out against the hate campaigns
What difference it is going to make....end of the day general public has to suffer....
Yes bjp, now you aware you JEWS policy will not accepted in GODS OWN LAND. You are targeting in your dominated state but it won't work out all over INDIA.
Tit For Tat is the right policy for you and your backing communal group.
Jai Hind!
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