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Bengaluru, Mar 8: The economic slowdown in the country had a cascading effect on Karnataka, as its growth rate for outgoing fiscal 2019-20 is projected to be 6.8 per cent against 7.8 per cent in the last fiscal (2018-19), a senior official said on Saturday.

"The Gross State Domestic Product (GSDP) is estimated to be 1 per cent less at 6.8 per cent for this fiscal from 7.8 per cent in the last fiscal due to slowdown in manufacturing (industry) and services sectors," an official of the state finance department told media.

Though the agriculture sector has revived from 1.6 per dent in the drought-hit last fiscal (2018-19) to register 3.9 per cent this fiscal, growth rates of industries and services will be 4.8 per cent and 7.9 per cent for 2019-20 against 5.6 per cent and 9.8 per cent respectively in 2018-19.

"The GSDP is projected to grow at 6.3 per cent in the ensuing fiscal of 2020-21 due to continued slowdown in the national economy," the official hinted.

According to the state's economic survey for 2019-20, the farm sector grew more than double to 3.9 per cent from 1.6 per cent a year ago due to increase in the production of foodgrains, dairy products and fish catch.

Foodgrain production across the state rose to 136 lakh tonnes from 128 lakh tonnes a year ago, the survey revealed.

"In line with the national Gross Domestic Product (GDP) growth rate decline, Karnataka's GSDP has declined from a high of 13.3 per cent in 2016-17 to a low of 6.8 per cent in 2019-20.

"The GSDP has declined from a double-digit growth of 10.8 per cent in 2017-18 to 7.8 per cent in 2018-19 and 6.8 per cent in 2019-20," the survey pointed out.

The survey has adopted the all-India growth rate for the services sector growth in the state, which reflects the impact of slowdown in the key sector.

At current prices, the southern state's GSDP is expected to be Rs 16,99,115 crore (budget estimates) with a 10 per cent growth rate in the next fiscal (2020-21).

"Real estate, professional services and ownership of dwellings contributed 35.31 per cent to the GSDP in 2019-20, followed by manufacturing with 15.32 per cent, trade and repair services 9.51 per cent and crops 7.44 per cent," said the survey findings.

Per capital income in the state at current prices is estimated to be Rs 2,31,246 in 2019-20, an increase of 8.8 per cent from Rs 2,12,477 in 2018-19.

"The per capita income in the state is 58.4 per cent more than that of all-India rate at Rs 1,35,050 in this fiscal," the survey added.

May 28: The Karnataka State Election Commission on Thursday announced postponement of gram panchayat polls citing the COVID-19 pandemic.

Out of 6,025 gram panchayats, the tenure of 5,800 gram panchayats will end by June-August 2020.

"After examining the feasibility of conducting general elections to gram panchayats, the State Election Commission, considering the current situation as exceptional circumstance, has decided to temporarily postpone the general elections to the gram panchayats," the SEC said in a release.

It said after examining the situation in the days to come, the decision will be taken on holding the general elections to the gram panchayats.

The CEC also states that report by Deputy Commissioners of districts on holding the elections was verified and it has been found that district administrations are involved in COVID-19 related work and there will be shortage of staff and transport facilities for the elections. Besides, there would be a problem in maintaining law and order.

Last week through a letter to Deputy Commissioners of districts, the commission had sought opinion on holding panchayat polls amid the COVID-19 crisis. It had also pointed out that electoral roll needs to be prepared and reservations had to be allocated as per the new amendments.

Stating that the state election commission's decision to postpone gram panchayat elections was against the provisions of the Karnataka Panchayat Raj Act 1993, the Leader of Opposition Siddaramaiah said the Congress will question this "undemocratic act" in the court of law.

He accused the commission of playing to the BJP's tune and said the congress will protest the decision at gram panchayat level.

Opposition parties in the state, especially congress, have been demanding elections.

The government was in favour of postponement of polls and wants to have administrative committees to govern the panchayats, until the polls are held, according to government sources.

The Congress, raising apprehension about administrative committees, has accused the government of conspiring to have ruling BJP workers as its members.

A congress delegation had last week submitted a petition to State Election Commissioner B Basavaraju and urged the Commission to hold elections.

The congress had even suggested continuation of sitting panchayat members until the polls are held, instead of appointing administrative committees.