Customs officer Kotekar Abdul Kareem conferred presidential award

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.

Udupi, Feb 11: In a tragic incident, a 62-year-old man from Chennai died of drowning in Sri Krishna Mutt’s Madhwa Sarovar (pond) during the wee hours of Tuesday.

Police said the deceased has been identified as Capt G Sridharan.

It is suspected that Sridharan accidentally fell into the holy pond while taking a bath. The incident is said to have occurred around 4 a.m.

Bengaluru, Apr 26: Two businessmen brothers, Tajammul Pasha and Muzammil Pasha, in Karnataka's Kolar district have set out to help people in need amid the lockdown over the COVID-19 pandemic by selling their land for Rs 25 lakh.

On seeing daily wage labourers and their families in Kolar suffer during the lockdown, the brothers said they decided to sell their land and use the money to buy essentials and food grain for a large number of poor people.

The brothers also bought oil and cereals with the money. Then they set up a tent next to their house and started a community kitchen to make food for labourers and homeless people.

"Our parents died early. When we shifted to our maternal grandmother's place at  Kolar, people from communities, Hindus, Sikhs, Muslims helped us survive without any religious bias," said Tajammul Pasha, visibly emotional.

The Pasha brothers are into banana cultivation and real estate. Tajammul was five and his sibling Muzammil was three when they lost their parents. They had to move from Chickbalapor to Kollar, where their grandmother lived.

"We were brought up in poverty. We survived because of the support of people of all communities and religions. We have signed the society agreement bond and handed it over to our friend who purchased our site and gave the money," the brothers said.

Once the lockdown ends and the land registrar's office opens, the remaining steps to transfer the land will be completed, they said.

So far the two brothers have supplied food grain, oil, sugar and other essentials to over 3,000 families. They have also given hand sanitizers and masks to the poor.

The Kolar administration has issued passes to their volunteers so that they can help in this difficult time.

The number of coronavirus cases in India has increased to 24,506, including 775 deaths, the Home Ministry said today, adding that 1,429 cases and 57 deaths were reported in the last 24 hours.

Amid a countrywide lockdown to check the spread of the highly contagious illness, which began on March 25, the government last night issued an order to allow neighbourhood shops to remain open with conditions; malls across India continue to remain shut.