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
Do whatever u want but please dont hurl bombs on each others mosques. Here other communities also reside.
Sad development. But the saddest thing is the ongoing grave worship in the same place. May Allah grant them Hidayah.
@Sharat, All are know who plant bombs , fake currencies, communal riots, extremely hungry to get in to power by killing innocent muslims, so better do some home work before post comments
@ Umar Farooq,
Sad thing is that still you are not matured enough to understand what
is grave worshiping ? May Allah grant you good mind to understand the difference between worshiping & respecting.
Then why u watch moon. If u tell this to saudi. They might ban u.
Yes Sharat exactly.... but not like Saadhvi Pragya or Asimanand...
Also not like swami OM baba and Nityananda..
Big salute for your chaddi words...
guys.. dont hurl bombs in Masjid... beside others also reside... better to hurls in Sanghi Shaka...only sanghis will dei.. no others.. they will sitin apart from public ... let them dei.... no issue
Extradited these useless thangas, they are there to devide muslims for their ego class...moon sighting in bhatkal is more than enough to end the month and celebrate the Eid. I think no need many khazis to Mangalore, they are spoil brat of Muslims especially in Mangalore becuase their EGO clash will not work in Kerala.
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