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.
Delivering the Friday sermon before a mammoth gathering at the Eidgah in Rajiv Nagar in Mysuru, Sheikh Saleh bin Muhammad Al Taleb said Muslims should love and meet the needs of other human beings without any discrimination on the basis of religion.
Comments
in Adwait Siddhanta Adi shankarachtya said the same thing 825AD as has been said by Dr. Sheikh Saleh, Mecca Immam at Mysore. God exists in all human hearts therefore one who loves God cannot hate another human. Dr Saleh deserves to be congratulated for his advice to Muslims in India especially one's like Owaisi.
Really ? Is that what the Koran says about Jews ? Aren't they the descendants of apes and pigs as per the koran ?
Can any truthful Muslim explain what is TAQIYAA
what is KITMAN
You will not see any Muslim religious leaders giving hate speech on stage even in dreams. Islam the message of peace.
We heard lot of Statements from the Cheddi gangs giving the opposite to their followers and misguiding them to do acts which people do without even knowing the reality... just following blindly without knowing what is right & wrong.
THIS is called a MUSLIM LEADER .... the more people hate ISLAM, We should inform the message of TRUE GOD, ALLAH who created all that exists ... May ALLAH guide our Leaders and the people who follow them sincerely and stop hating the people of all religion.
May Allah guide those hindus who are honest in searching for the TRUE GOD. IF ALLAH guides thats the best blessings one can ever have in this LIFE which ALLAH gave us.
Add new comment