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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now innocent children are also not spared by hindutva
These kids are like clan flowers not seen the world. Very innocent.
How a person can have hatred OR enmity with such innocent kids.
This guy does not represent all Hindus, this is his own corrupt ideology. However his fellow Hindus have responsibility to correct him, to change him by hook OR Crook. One guy spoils the name of entire community is not acceptable in the civil society.
We are with the saddened parents and friends of these kids.
Uneducated goons and their leaders.....expected......when this guy dies please notify in media so the whole world can comment....Sattadu ondu naai alla ....municipality garbagige haaki....
shame on him no matter what he is or which religion he belongs to, he is not worthy of being human.. if he has no mercy for humanity.. put those aside, we have more people from different community who prayed for all those blessed souls.. today i attended juma in one of masjid.. and there was dua after prayer including these children's n all those who passed away in such tragedy. #beahumanfirst #humanityismypriority
RSS and Bajrangi has become more dangerous for human. They started to think like animals.
After worshiping stone for many years their heart has became stones permanently.
WHAT one can expect from this inhumans, cruel communal minds,even animals have mercy to each others and they express it some forms, but these so called chad.....is are now proved to be worse than that.. may the almighty creator protect the people of our nation from such ANTI HUMANS..
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