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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Alhamdulillah.. very fortune for mangaloreans, what I see is not many muslims make use of Islamic banks as may be it bacame a habit of using interest banks though they never take interests .. or these banks aren't reaching them .. or any other issue .. recently we planned to buy a flat with a interest loan of 10lakhs , but somewhere we felt like war against Allah ..We dropped it as it involved interest loan .. then suddenly it stroke to my head I can opt for an loan from Islamic bank.. was looking for interest free bank and I found this and same in bangalore as well... In shaa Allah..I hope these bank benefits people like me ..And all Muslims as well..Keeps them away from dealing with interest. May Allah safeguard us from this kind of grave sins
ARE the Cheddi members so WEAK, that they need to be informed that Human life is more valuable than the COW?
Cheddi foot soldiers should use their intellect rather than depending on Cheddi orders and make cow as mother or not.
SEE How Cheddi Foot Soldiers are used by the Cheddis... When they want, they make the CoW the mother. and foot soldiers are used to do violent in the society to protect cow.. and now they even cant control what they sow ...
When PUBLIC Wake up in the society even the cheddis who have 60% will also bow down to PUBLIC... People should note this stand and whenever someone trying to disrupt the society ... The whole like minded society should come together and speak for the truth and give justice...
Spying, cheating, terrorism, looting is their RSS goons birth rights Kurshidji. Nothing can be done and they are digging their own grave.
Simply spoiling their future along with others.. parents all efforts to bring them up went in vain because of the RSS terrorist activities.
bol bachan by yaddi keep. . . lol
Muslims must increase their eemaan to get the help of Allah. Remember 310 Muslims won war against thousands of kafirs. This is the type of help Allah will provide if we become mu'min. Forget this kafirs because Allah has given them the strength inorder to test us. That's it.
This RSS is a real anti human group. Send all those chaddis to andaman nicobar islands
They all belongs to sri rama sene and all from criminal background, put them behind bar for 2 years
Ek baar haji walo ki khidmat ke liye hame bhi mauka diya jaye aur isi bhane allah ke ghar ki ziyarat bhi ho jayegi
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