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
What is ur problem Mr ,go and do ur business don't interfere in our rights.
Someone must check Christina's adhar card sorry, ur id card Whether she Indian or not.
For my sisters you don't go to such college you can go to Madarasha it's best for you in this life and hereafter best education where you get .for the principal first change ur name.
why you send muslim girls to clg.. let them sit at home and help your parents problem is slowed. PFI brother dont waste your time and do not encourage
why muslim girls students using mobile can you stop tiz some of our muslim girl students roaming inside city centre can you stop tiz mybrother
go and wacth inside city centre on friday after many our commuinty student weariing hijab and roaming with their boy friend kindly try to stop tiz
I request the principles sister to were a normal dress insted of religious dress she is wearing , let her be an example for the rules she has set.
I am asking now only muslims wake up when any some so called muslims their marriges arraenging in this christhian churches why? in mangalore no muslim marrige halls ? these all are only for gimik. The college was against the sharia simply, change the college why this college only. if done like this this kind of all colleges they learn lesson .
Their marriage halls we have issue their they cooking haram things & we also cooking hallal then we no problem, because this all our dignity .throw your dignity follow Quran & Sunnah and became original muslim
If clg rules are against democracy we hv to chnge clg rules not our rights.
When injustice becomes law be on the side of justice
thn islam is peace & beautiful bt the systems are against islam thn this islam also hv certain stratagy & thts thought by prophet (s.a)
Secular? If right to cover the head is not secular for you, then there are million christians/hindu women out there wearing head scarfs including former President Prathiba Patil. So, you mean to say that they all cannot have education in India?
Ughhhhh. Individual choice yes. But college has certain rules. You don't want to follow the rules, you don't join that particular college. Also, Islam is a very beautiful religion. Let's not make it all about the Hijab.
100% they are Indians as they are fighting for their rights which is guaranteed by INDIAN CONSTITUTION. Now could you pls chek your voter ID and of the Principal who made rules against the constitution which is legally termed as Anti-Indian rule.
How can this Principal wearing head scarf frame college laws which is against to the constitution of India. Why she is allowing her sibling nuns wearing Hijab like dress and head scarf attend classes in the same college? What is her hidden agenda? How can she justify her draconian dictat??
Someone must check the voter IDs of protesters to find out whether they are really Indians
Why do these bigots go to a secular college if they want Taliban rules?
At one side head of the institutions are wearing head scarf and allowing Christion nuns whose dress code includes head scarf to follow their tradition. On the other side they are objecting Muslim girls to wear head scarf which is similar as their scarf. May I call it as #hypocrisy
Please decent girls don’t go to that college.
Students all are equal in the college
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