Full budget row: CM finds support in deputy, DKS

Bengaluru, Jan 17: Chief minister BS Yediyurappa is likely to induct new ministers into his cabinet only after he returns from Davos, Switzerland, on January 25.

Yediyurappa will leave for Davos on January 19 to participate in the World Economic Forum’s 50th annual meet.

Sources say Yediyurappa is keen on expanding his cabinet before he leaves for Davos and is still trying to secure the green signal from BJP national president Amit Shah. However, Shah has cold-shouldered Yediyurappa’s several requests for a meeting to discuss the issue.

Shah is scheduled to visit Karnataka on January 18 to participate in a pro-Citizenship (Amendment) Act rally in Hubballi and the CM plans to corner him there. But, given the time constraint, Yediyurappa is likely to put off the exercise till he returns from Davos even if Shah extends approval.

“Even if Shah gives the green signal, Yediyurappa will have less than 24 hours to expand his cabinet,” a source said. “It is highly unlikely he will rush through the process of inducting ministers. Also, his presence is required to douse disgruntlement which is bound to arise once the new ministers are sworn in.”

The CM and the party high command are on different pages as far as cabinet expansion is concerned. While Yediyurappa is hell-bent on keeping his promise of inducting all the newly elected MLAs, who switched from Congress and JD(S) to the BJP, Shah is keen on sharing vacant berths equally between loyal MLAs and the new entrants. There are 16 cabinet berths vacant.

Shah, sources said, is of the opinion that giving 12 berths to the turncoats will lead to heartburn among loyalists and it will impact the party’s prospects in the next election. “Moreover, he is of the opinion that none of the turncoats have mass appeal, nor do they have any administrative experience. This, he thinks, will impact governance,” said a source.

This has resulted in a deadlock and the issue has dragged on for a month now.

Bengaluru, Mar 27: A 65-year-old coronavirus patient who died in Karnataka this morning after apparently contracting the infection on a train ride has raised concern about community transmission of the highly contagious disease.
The man, the 60th coronavirus patient in Karnataka, died in Tumakuru. It is not known for certain how he caught the virus. The Karnataka Health Department has posted a notice on Twitter asking whoever travelled with him on train to come forward.

He had no history of recent foreign travel but had apparently traveled to Delhi on March 5 by Sampark Kranti Express and returned on March 11.

On March 7, he arrived at Delhi's Nizamuddin station and participated in an event at Jamia Masjid.

The man took a train back on March 11 and arrived at Yeshwantpur in Bengaluru. From there, he took a bus on March 14 to his hometown Sira.

He first showed symptoms of COVID-19 on March 18 and was taken to a private hospital. He was sent home with medicines but his condition worsened.

On March 23, he was admitted to a district hospital, but checked himself out against all advice and went to a private hospital. When his health showed signs of deterioration, he was again sent to the district hospital, where he tested positive for coronavirus yesterday. He died around 10.30 am today.

The health department has since traced 24 people who came in direct contact with him and are so, in the high-risk category. Thirteen are in hospital and eight have tested negative.

"All passengers who had travelled with him on the train are being traced," K Rakesh Kumar, Deputy Commissioner, Tumakuru, was quoted as telling news agency ANI.

A 70-year old woman and a 76-year old man had died of coronavirus or COVID-19 earlier in Karnataka.

India has over 700 coronavirus cases, including 17 deaths.

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.