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.
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Be good to believers and non believers.
Only your good characters can attract others. Not your bad attitudes.
So, be good to all.
Our Hindu brothers, know about Islam and they like it. One day, they will come embrace Islam. Islam is natural way of living.
When the girl from Non-hindu family married a Hindu man, she was not accepted in Hindu Community.
They dont want someone to join Hindu religion and also they dont let someone join other religion.
what kind of mentality. Within Hindu community, they dont treat all Hindus equally, A lot of grades, upper, medium, lower, lowest..... 1000 grades.
Is it religion of God. This nothing but Moking the God.
So they have taken the right step, to join Islam which is the real religion, where every teaching goes with science. There is no superstition.
Equal treatment to all and no discrimination between anyone.
What is religion. Religion is set of commands to be successful come from the God, who is the wisest.
Remember a religion can not be a religion if it contradicts science.
The Islam religion is a full of guidance how to live in this world .
It is teaching how to be successful and after the death which is the permenent life for ever (after the death).
Alhamdulillah! Allahu akbar .. let allah give hidayath to all commented brothers and sisters
They just forced to do that. Media hiding the facts
When Modi rules, these things wont amuse people
Foolishness. They jumped from small pothole to deepest well of trap
Fake news.. propaganda
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