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
June 29,2020

Bengaluru, Jun 29: A 99-year-old woman has successfully recovered from coronavirus in Bengaluru, leaving the medical fraternity and her family elated.

The woman had contracted the pathogen after coming in contact with her grandson and was hospitalised on her 99th birthday on June 18.

The woman was taken to the government Victoria Hospital along with her 70-year-old son, daughter-in-law and grandson.

"While we three developed symptoms like cold, cough and fever, my mother remained asymptomatic," the woman's son said.

The family members are still wondering how they got infected by the virus as all except the woman's grandson, were confined to their home most of the time.

Her 29-year-old grandson was the only one who went out to buy groceries.

Initially, the family approached a private hospital nearby for treatment, but they refused to accept COVID-19 patients.

Left with no option, the family got admitted to the Victoria hospital.

"We had reservations about Victoria hospital, but it turned out be a good one.

We did not spend a penny since the day we were admitted and my mother and son fully recovered," the woman's son said.

According to Dr Asima Banu, nodal officer of the Trauma Care Centre at the Victoria hospital, the woman was reluctant to get treatment at the hospital.

"With moral support from doctors and nurses at the Trauma Care Centre, she recovered very fast. She is always positive in life," the doctor said.

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News Network
May 18,2020

Bengaluru, May 18: Over two months after his appointment as the Karnataka Congress President, DK Shivakumar is likely to take-over the reigns of the party officially on May 31.

"There are two dates, May 31 and June 7. He is most likely to officially take over as KPCC President on the 31st," sources close to Mr Shivakumar told PTI.

After remaining in a virtual vacuum for nearly three months, the party high command on March 11 appointed Mr Shivakumar, known to be the Congress' chief troubleshooter in crisis situations, replacing Dinesh Gundu Rao as KPCC chief.

Mr Rao had quit the post in December 2019 after the party's dismal show in the bypolls when it won only two of the 15 seats and yielded 12.

Congress sources said once the appointment letter came from the high command, he has been KPCC president and officially taking charge was just a formality.

"He will be officially handed over the party insignias and responsibilities relating to bank accounts and cheques, among other things, that has been traditionally followed," they said, adding the official take over was delayed by the coronavirus.

After his appointment as KPCC president, Mr Shivakumar has been meeting a host of senior party leaders and leading the party in the fight against coronavirus.

These include setting up of Congress' COVID-19 task force, alerting the government in its management of the crisis, holding weekly video conferencing with leaders of party's local units to gather information, among other things.

Sources close to Mr Shivakumar said the official take over would be a simple event, looking at the current situation due to the pandemic.

"Very few select party leaders and office bearers, say about 50 odd people, are likely to be in attendance at the simple event at KPCC office," they said, adding that arrangements may be made to telecast the event live for the benefit for party workers and local leaders.

A six-time MLA, Mr Shivakumar had a long wait for his appointment to the coveted post, due to opposition within. There were reports that Congress Legislature Party leader Siddarmaiah had lobbied in favour of one of his confidants for the top job.

In a first, appointment of three KPCC Working Presidents- Satish Jharkiholi, Saleem Ahammed and Eashwar Khandre, was seen as an attempt by those apposing Mr Shivakumar, to weaken his hold on the party.

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News Network
July 3,2020

Bengaluru, Jul 3: Karnataka Health Department on Thursday permitted District Health Departments to appoint doctors with MBBS, on a contractual basis with permission of concerned District Health Officers and Commissioners, a statement said.

The state government has also hiked the salary of contractual doctors from Rs 45000 to Rs 60000 per month.

Earlier in the day, Karnataka Health Minister B Sriramulu urged contract doctors to continue offering their services amid their demand for regularisation of services.

"I request the contract doctors with folded hands to continue offering their services. With regard to their two demands, one of salary hike and the other being permanency, I assure all of them that I stand with them and their requests will definitely be fulfilled," said Mr Sriramulu.

The Chief Minister had also discussed about the two issues yesterday and agreed to facilitate the pay hike, he added.

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