Irked by Hegde remarks against Gandhi, BJP asks him to take 'remedial' measures

Bengaluru, Feb 5: Despite installing a BJP government in Karnataka through disguised operation Kamala, the Prime Minister Narendra Modi-led union government has continued its step motherly attitude towards this south Indian state.

Under the new formula adopted to share central taxes among states Karnataka will be the worst-affected. Though the 15th Finance Commission has recommended a special grant of Rs 5,495 crore for the state for 2020-21, the Centre appears reluctant to pay up and instead has asked for the proposal to be reviewed.

During the Union budget, the report of the 14th Finance Commission headed by NK Singh for 2020-21 was tabled in Lok Sabha. It shows besides Karnataka, Telangana, Mizoram and Kerala saw their central tax share decrease, while Uttar Pradesh, Bihar and Maharashtra were top gainers.

Karnataka's share has decreased from 4.7% provided by the previous finance commission, to 3.6%. Acknowledging there is a steep decline in Karnataka's share from 2019-20, the finance commission has recommended a special grant of Rs 5,495 crore for the state.

Its share in 2019-20 was Rs 36,675 crore, but under the new formula, Karnataka will get only Rs 31,180 crore in 2020-21 from the divisible pool of Rs 8.5 lakh crore - a decline of 22.5%.

Also, the decrease for Karnataka comes on the back of a shortfall in 2019-20. While the state was entitled to Rs 39,806 crore from the divisible pool, it got only Rs 36,675 crore as the Centre suffered a tax revenue shortfall of Rs 1.5 lakh crore.

What is more disheartening though is the Centre's refusal to pay the special grant. Instead, the Union finance ministry has asked the finance commission to reconsider the recommendation. This has prompted the state to take up the issue with the Centre.

"The decline in central taxes devolution comes at a time when the state is going through a tough financial situation. Steps are being taken to ensure Karnataka gets justice," said chief secretary TM Vijay Bhaskar.

Officials said besides corrective measures for 2020-21, the focus will be on ensuring a fair share in subsequent years. However, Karnataka has little chance of getting its dues as the Centre is known to be prudent when distributing tax proceeds among states.

"The Centre has certain views on devolution. We have done our duty by submitting the interim report. It's up to the states to convince the Centre," said Ravi Kota, joint secretary of 15th Finance Commission.

Under the new formula, the commission changed the weightage for some of the six criteria it considers - population, area, forest cover, income distance, demographic performance and tax effort.

Bengaluru, Apr 17: The Karnataka government on Friday asked Information Technology, biotechnology and allied companies not to go for closure or layoffs citing lack of work orders due to COVID-19 lockdown and instead consider measures like cutting salaries among other things.

It said IT/BT companies in the state can resume operations with 50 per cent from their office space after April 20.

Deputy chief minister C N Ashwath Narayan, who is also in charge of IT & BT department, held video consultation with the captains of the industry in light of the disruption caused due to the lockdown, and discussed on the way forward - both for effective implementation of the lockdown as well as the future course to deal with the unique circumstances.

"Immediately we are going to permit 50 per cent, but it doesn't mean that they will be able to mobilise 50 per cent immediately. It will take few weeks for them to do so. Gradually percentage will increase and it will start getting back to normalcy," Ashwath Narayan told reporters.

Stating that there were discussions regarding layoffs, he said, companies should not go for layoffs, instead of that gradation or deduction in the salary should be taken up, so that it doesn't affect the functioning of companies also that are facing less orders.

"On handling such financial crisis they (industry) wanted government consideration with mutual cooperation and understanding the concerns," he added.

Pointing out that concerns were also expressed regarding measures or protocol that needs to be followed if any positive cases are reported in any of the office spaces, Ashwath Narayan said, certain guidelines will be issued in consultation with the Health Department.

"Once the relaxation is given this may become the usual phenomena, as cases will be reported here and there... so in that scenario how we need to work and handle the situation is important, so we will be working on protocols how to handle the situation. So far we have planned for residential areas and not for work spaces," he said.

The deputy chief minister said the IT and BT industry leaders are extremely happy with regard to the support system or backup given by the government of Karnataka, particularly IT/BT department.

Even during this crisis period in the entire world, Karnataka and Bengaluru were able to get a good reputation and become reliable partner, as IT/BT service providers in both the city and the state were able to provide excellent quality services to their clients without any interruption, he said.

If you compare with any state or country, we have done extremely well, and hope that this would get more business, he added.

Biocon chief Kiran Mazumdar Shaw, Infosys co-founder Kris Gopalakrishnan, who is also the Chairman of Vision Group IT, were among others present at the video conferencing.

Noting that concerns expressed by the industry regarding passes for employees to commute to office, Ashwath Narayan said, the government would make necessary arrangements in this regard, considering measures that need to be taken after April 20.

Regarding providing transport facility, they can seek for services from public transport Bangalore Metropolitan Transport Corporation (BMTC) on a contract basis, he said, adding that "We will be ready to facilitate BMTC."

The minister said the industry leaders wanted internet services to continue with the same quality and without any interruption.

Hassan, Jul 16: In fresh incident of cast killing, a Dalit youth in Alur taluk of Hassan district was shot dead yesterday by the relatives of the girl with whom he was in love. 

The deceased identified as Madhu, a 30-year-old resident of Soppinahalli village. He had taken a 25-year-old girl with him and was planning to marry her after taking her family into confidence.  

The relatives of the girl, who belong to upper caste, claimed that Madhu had kidnapped the daughter of one Ramesh of the same village. The girl's uncle Rupesh had waylaid Madhu when he was on the way to the field and shot at him. 

The body of the deceased as been shifted to a mortuary. The accused Rupesh has gone absconding. Sources said that the family of Ramesh has strongly opposed the inter-caste marriage.