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.
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I do not know why media is making some big issues. Most of us have many FB accounts, Email Ids. This is not like Aadhar or Passport where it is the identity. Even in US, I know many senators having many FB accounts. They cannot share their personal details on FB so they have personal, political and regular friends.
Its not your fault. Politics isn't your cup of tea. It is something that is beyond your abilities! Sumne acting madkond iddidre yeshto chennagittu alva? Why on earth do you need all this? Is it worth?
...she just wanted to follow Kejribhai and thought abusing Modi would be a good idea...poor thing paid for it....the way it looks spandana will now onwards beat slower and more sensibly...
When will Ramya make public her smart strategy to take over Nehru dynasty to become all-powerful in Congress party and announce her secret master-stroke engagement to Rahu ?
I like her witty tweet and proud of her success she achieved at young age. She is more smart courage than feku supporter stone aged most superstious backward mindset RSS criminals (especially pucking uneducated ignorant brainwashed male and from mangalore chaddi taliban region) from karnataka. Best part, she doesn't give rats to 1000s of hate, abuse message from 3rd class chaddi criminals. RSS
criminal hurt by fact! RAT that how smart Ramya treat trolls on her facebook and twitter. you low life coward chaddi criminals can intimate her with her and demolishing comments? get a life
manipulating videos is the history of Brahmin Bania Jumla Party! They did it in JNU, they did with Hardik Patel, they might have done now, they will continue doing always
ತಾಯಿ ರಮ್ಯಾ ದೇವಿ ! ಎಷ್ಟು ಶತದಡ್ಡಿ ಇದ್ದೀಯಮ್ಮಾ ನೀನು !? ಅಯ್ಯೋ ಪೆದ್ದಿ, ಮುಂದೆ election ಗೆಲ್ಬೇಕು ಅಂತ ಇದೇಯೋ ಅಥವಾ ಪಪ್ಪು ಆಗ್ಲೇ ರಾಜ್ಯಸಭೆ seat ready ಇಟ್ಟಿದಾನೋ?
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