Karnataka fears massive revenue loss after currency chaos

November 16, 2016

Bengaluru, Nov 16: The Centre's move to demonetize high value currency notes threatens to derail Karnataka's revenue collection this financial year. Officials fear that the state might miss its revenue target by at least Rs 5,000-Rs 15,000 crore for the current fiscal. The move has already affected liquor sales, property transactions, and sale of new and used vehicles.

Untitled-1"We are still assessing the impact and will get a clear picture by the weekend. We are certainly expecting some impact,'' said ISN Prasad, additional chief secretary, state finance department. "The government's revenues have taken a severe beating following the demonetization move. Whatever taxes were supposed to come to the state, including commercial taxes, sales taxes and all the revenues have been hampered. It will certainly have a huge impact on this fiscal's tax collection," said another finance department official.

The government's excise department has been the worst hit. The sale of foreign liquor has come down drastically in the past few days. A senior excise department official said: "Most of the excise revenue come from the sale of Indian Manufactured Foreign Liquor. Officials at government outlets have claimed that the sale has gone down by at least 50%."

The government had fixed an ambitious revenue target of Rs 16,510 crore for the excise department this year following a 25% hike in taxes on liquor. The government has collected only about Rs 7,500 crore so far. "People have stopped buying liquor, especially the expensive ones, due to shortage of high-value currency," added the official.

The revenue target for the stamps and registration department had been fixed at a higher Rs 9,100 crore for the current fiscal. Most of this amount comes from revenue layouts through stamp duty and property registration, which has completely stopped since November 8. "Bengaluru is a big market for secondary real estate, which traditionally works on 60:40 white and black money ratio. Ban on transaction of black money has badly hit property registration," said a senior official of the stamps and registration department.

Comments

Althaf
 - 
Wednesday, 16 Nov 2016

Not only in karnataka All over india it will effect.

Skazi
 - 
Wednesday, 16 Nov 2016

let the Govt reduce the Value of lands for registration purposes... then the govt will get back the revenues.... as the buyers will come forward in the real estate business .....
The govt does not apply its mind while fixing the land values ... It goes by survey no.... whether the site has road connection or not,, the govt value is same for all sites ....

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News Network
July 21,2020

Bengaluru, Jul 21: Students who are Covid-19 positive but are asymptomatic will be allowed to write the Common Entrance Test (CET) scheduled on July 30 and 31 for entrance into professional courses in Karnataka.

According to the Standard Operating Procedure (SOP) issued by the Department of Health and Family Welfare for CET, space should be allotted for students who have tested positive. Such students will have to be transported to and from the exam centre in an ambulance.

According to the SOP issued yesterday, candidates with COVID-19 “shall provide a risk consent certificate for taking up the exam.” The SOP also says “they shall inform about their status to the authorities concerned in advance to make the necessary arrangements.”

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News Network
January 15,2020

Mangaluru, Jan 15: A 28-year-old man, who is a first-year MBBS dropout, was arrested by the police after he posed as a doctor and treated patients at a private hospital at Derlakatte on the outskirts of the city.

The arrested has been identified as Mohammed Habib Hussain, a native of Shivamogga, who was residing in Attavar, Mangaluru. He had discontinued studies after the first year due to personal reasons.

The incident took place on Sunday night  at Yenepoya Medical College, Derlakatte. Dr Sampathila Padmanabha, medical superintendent, Yenepoya Medical College, said the accused had come to the medical college at midnight on December 29.

After speaking to the security guard at the hospital entrance, he introduced himself as an assistant to the consulting urologist, and wanted to visit patients at the private ward situated at floor number 7.

After entering, he called the duty nurse to get case sheets. Later, he examined two women patients in the presence of the duty nurse, and also wrote a prescription on the patient case sheet. He also yelled at a nurse, saying that she isn’t doing her duty properly, and left the place.

However, the nurse who grew suspicious, informed the management, after the accused had left the place. The management, who crosschecked about the accused, found out that he is not a doctor, and that he is also not associated with the hospital.

The management sent an advisory to all employees to produce their identity cards, whenever they enter any wards, especially at night, and also to keep an eye on anyone suspicious. The same message was passed on to other hospitals in the vicinity.

The accused again showed up at the hospital on Sunday night. As security guards were told about strangers visiting the hospital in the guise of doctors, he was allowed to enter the hospital premises, so that he can be apprehended. He later went to the reception counter and queried about the consultant urologist. When he noticed that the staff had an idea about what was happening, he tried to flee from the spot. He was later caught by a security guard, and the police were informed. He was arrested by Ullal police station personnel.

Dr Padmanabha added that he used to roam around with his friend in a car. He was also involved in a similar incident at a private hospital in Kankanady, and the same has been informed to the police. He visited hospitals in a car, which has been seized by police.

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News Network
April 14,2020

Bengaluru, Apr 14: Bracing for post-lockdown hard times, the Karnataka government on Monday decided to auction about 12,000 BDA sites and regularise unauthorised constructions across the state in a bid to shore up its already-thin finances.

"Some 12,000 corner sites (developed by Bangalore Development Authority, or BDA) are lying idle in Bengaluru. We hope to net about Rs 15,000 crore from the auction of the sites," chief minister BS Yediyurappa said after chairing a meeting with senior ministers and officials to discuss ways to raise funds.

"The Covid-19 pandemic has thrown Karnataka into a deep financial crisis. There's a need for such measures," the chief minister said in defence of the decisions.

The sites – mainly of 40x60ft and 50x80ft dimensions – are in nine layouts. Also, the state government will auction corner and vacant sites in layouts formed by development authorities in other major cities of Karnataka.

Industry experts said that in a tepid market, it wasn’t easy to find buyers for the sites, each of which costs about Rs 1 crore. The CM said, “Since it’s an open auction, I’m confident of a good price since corner sites are always in demand. If we don’t get the expected price, then we will stop the process.”

The meeting decided to fast-track disposal of the cases related to regularisation of unauthorised constructions pending before courts. “If courts decide these cases, then thousands of people will be relieved, besides helping the government in mobilising resources to take up development works,” the CM said.

The government hopes to get about Rs 4,000 crore from the layout-regularisation move.
The government decided to amend the law to allow hundreds of private and cooperative housing societies to allot residential plots.

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