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.
He has been given time till tomorrow morning to file his reply as to why no action should be taken against him.
Comments
Its all about vote bank politics. In fact these pakhandi babas are rapists and believe in homosexuality Those who justify this dhongi baba are indeed knew or pretend to be blind on the fact that many non muslims producing illegal children from extra marital affairs.
Please don't call him such people as Maharaj,
Maharaj is a sacred word. He talks like a drunken man.
He does not deserve for it.
If daring why does he refer indirect. He cant say as Muslims.
The man himself did not marry and expecting his followers to make 40 children.
We have in India many Hindu friends like brothers and sisters.
These people create intolerance amongst peace lovers.
very unfortunate these coward senseless are elected as MPs.
It shows what is the mind-level of those who elected Him.
This is the strategy of BJP to field such a hate mongers to divide the country. They deserve stringent punishment for spoiling public harmony.
Why propaganda , if hindus fear , they are become minority , let these swamies to marry at least one girl and produce children as many as possible , if they capable.... as more official survey non muslims are have more than one wife than muslims..... let the govt to publish 2011 religious wise survey report...!
These swamis are drunkards....they say whatever they feel like...disgusting....must be eliminated from this earth....it will bring peace and tranquility to everyone....
Muslims have the the power and guts to do that in reality. Not like Sakshi Maharaj who afraid to get marry in his life.
What will be the end result if he is found guilty .... He should be kicked out/ Booted out from the Loksabaha...
Let him show a single person with 4 wives and 40 children.... No doubt he is expert in Ramayana and Mahabharatha stories ....
I appreciate EC action. EC should recommend removal of this hate monger and should not allow for further election. I wil appreciate if EC removes voting right of this hate monger. I agree with statement of this hate monger that money from cow slaughter is used for terrorist act. It is well known that beef exporters are bjp sympathizers and huge amount of money is given by these beef exporters to sangh parivar which is being used in terrorist acts. I think this hate monger is also getting a share.
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