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Bengaluru, Feb 12: Karnataka Sanghatanegala Okkoota, a congregation of various pro-Kannada organisations, has called for a state-wide bandh in Karnataka on Thursday (13 February 2020) demanding reservation in jobs for Kannadigas in both government and private sectors.

The Karnataka bandh, which will begin from 6 am to 6 pm, is likely to impact life in Bengaluru as well as in other parts of the state. Interestingly, Ola and Uber drivers have also extended support to the bandh. 

In Bengaluru, some other drivers’ associations, including Jai Bharatha Vehicle Owners and Drivers Association and Adarsha Auto and Taxi Union have also supported the bandh.

It is not yet clear as to whether the Karnataka State Road Transport Corporation (KSRTC) staff and workers associations will back Thursday’s bandh.

Several other organisations like the Karnataka Film Chamber of Commerce (KFCC), Centre of Indian Trade Unions (CITU), and Lorry Owners Association have supported the February 13 bandh.

In view of the bandh call, schools, colleges and hospitals across Karnataka are likely to remain closed on Thursday.

The Sarojini Mahishi report, which in 1984 suggested that Kannadigas should be given some reservation in jobs in private companies, public sector undertakings and multinational companies, is yet to be implemented.

It is to be noted that Sarojini Mahishi, a four-time MP and Janatha party leader, was appointed by the Ramakrishna Hegde government to head the panel in 1983. The committee submitted an interim report in June 1984. However, a final report was tabled in December 1986 with 58 recommendations, of which the Karnataka government had accepted 45.

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.