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
9/11 caused more Americans to embrace Islam.
The same thing happens here, more Truth Loving people start researching the speech of Zakir Naik and will easily embracing Islam.
Indians are more free and intelligent in deciding.
Unfortunately the RSS lead govt can detain him under pretext of so called all allegation, even without proof.
We have some blind law where innocent people become easy prey.
Such law is made to target the people who talks truth against the corrupt leaders.
Laks...Karkala.....
Every one knows you hypocrites are experts in fabricating proofs and give clean chit to criminals ...... Indians can eat indian cow meat in Gulf BUT not in India.... Go to Google and find out the names of Indians in the list of TOP CRIMINALS of the world ....Hypocrite ....
Laks, Karkala
From your frustrated comments i can understand that you are so far from the reality. Not a single proof can indian govt can show against Dr.Zakir naik. Even nobody can have the guts to have debate with zakir naik. so will wait and watch.
Laks, Zakir Naik did not trouble anyone...when he was preaching around everyone lived very happily here in India....He conveyed peace message to everyone...
Dear Altaf,
Dont teach us what to ban...Our present government have enough proof to put him behind the bar...and your lawyer is der to protect him..so leave it to court
Sitting in Doha its easy for you to comment
Basically it is not the matter of scare. In the recent years we have noticed that the Muslims are targeted & put behind bars without any evidence.
Later it is proved that the RSS goons are involved in the terror activity across the country. But they are not booked in any case.
These types of double standard Judicial System makes the Muslims to be away for certain period. I hope very soon Br. Zakir Naik we get justice & start spreading the peace message.
Mr. Zakir Naik's Preaching, Knowledge and popularity not gone well with sick minds, they cannot counter him through dialogue; obviously misuse of power is the solution!!!
Laks, Karkala
If you really wish to see that everyone in india should leave happily then you have to think about banning RSS and sangh parivar. Zakir naik never done anything so that hindus and muslim divide. He always tried to unite all religion. I think you have not listened to any of his speeches. My sincere request with you is to first listen his all complete speeches. Then come to conclusion.
Please watch the below videos. It is available in Youtube
1.Similarities between Hinduism and Islam
2.Similarities between Islam and Christianity
3.Does God Exits
4.Is terrorism a muslim monopoly
Hope after watching the above you can change your thinking from negative to positive .
Over all this is a political game with the backing of rss communal group.
Started to target peace loving INDIANS and Mr. ZN is on top of their list.
There is many more to come from religious leader to business man;social worker; leading person etc.
Instead of 5 years high court need to ban for life time... so that everyone can leave happily in India
ZN is scared..he will not come back to india.. if he was Innocent he could have came back long back ago...
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