Mangalore Physiocon 2018 inaugurated; UT Khader felicitated

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.

Mangaluru, Mar 27: Thousands of letters are pending at various Post offices in Dakshina Kannada for delivery since declaration of lockdown due to Corona virus which is spreading like wildfire in the country.

Of the 542 offices in the district, only eight are functioning and the only post office opened in the district facilitates only withdrawal of funds by the customers, district senior official said here on Friday.

There are in all 53 departmental offices and 96 branch offices in Mangaluru Taluk and about 4,000 general postcards and 1,000 Registered and Speed Posts are pending for delivery. Also, there are a total of 393 post offices in the Puttur division and only a few are opened. About 48 postal bags are pending and there are about 200-300 postcards in each bag.

Bengaluru, Jul 9: Karnataka Chief Minister B S Yediyurappa on Thursday said the Covid-19 situation was “getting out of control a little” in some parts of the state, but assured citizens that authorities were taking necessary steps. 

“In some districts, it’s getting out of control a little. But the district administration and police are working day and night,” Yediyurappa said before the Cabinet meeting where the Covid-19 situation will be discussed. 

Speculation is rife that the government might consider stricter measures to curb the movement of people to try arresting the rising number of Covid-19 cases. 

Later in the day, Yediyurappa is slated to inspect the Bengaluru International Exhibition Centre, which has been converted into a Covid Care Centre with 10,000 beds. The chief minister said he had ordered “immediate” arrangement of more ambulances for Bengaluru, where cases are rapidly shooting up. 

“A team from the Centre had come. They’ve made some observations and they also appreciated us for some of the things we’ve done,” he added. 

On Friday, Yediyurappa has convened a meeting of all Bengaluru ministers, legislators, MPs and councillors to discuss the Covid-19 pandemic in the city.