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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.

Bengaluru, June 1: Prime Minister Narendra Modi today praised the Karnataka government for its handling of the COVID-19 pandemic.

Addressing the silver jubilee celebrations of the Rajiv Gandhi University of Health Sciences (RGUHS) via a digital platform, he spoke about the Karnataka government's efforts.

He appreciated the work of front-line warriors who are fighting every day in the war against COVID-19 and stressed the need to respect them.

"Doctors and other medical workers are soldiers without wearing the uniform of soldiers. Any kind of attack or violence against them is not acceptable," said Modi.

"There are incidents of violence against the front-line warriors. Any kind of abuse, violence or rude behaviour is not acceptable. The world is looking at doctors and medical staff with gratitude," he said.

"This is the biggest crisis since the two World Wars," the prime minister said. "Pre- and post-COVID-19, the world will be different. The discussions now at a global level are humanity-centric."

Stressing the importance of medical infrastructure, the prime minister spoke about the decision taken by the Union Government to set up a medical college in every district.

"A nation like ours has to have the medical infrastructure and medical education. Now, every district is going to have a medical college," he said.

However, the PM remained silent on salaries of front-line warriors. The Karnataka government has so far not released the salaries of doctors, nurses and lab technicians hired under National Health Mission.

Bengaluru, Jul 15: Karnataka on Wednesday reported 3,176 new cases taking the total count of cases in the state to 47,253.

A total of 1,975 new cases were reported from the Bengaluru alone, the state's health department said.

The toll has gone up to 928 with 87 deaths reported today.

The total count of COVID-19 cases in the country is 9,36,181.