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.
Comments
Wow just in 9 mins the fire service reaches!!!
The biggest blunder of Modi Government....those who eat beef let them eat it....those who do not with all respect do not eat it....its their choice.....vote bank politics...that should be stopped for once and for all....
Muslims do not eat pig....but do not disturb Christians at all...
Masha allah our great leaders. may Allah give you long life.
incredible India.. The government, high commissioners getting a warning by RSS Terrorists but no action till date and if it is said by Muslim outfits they will name it as terrorism and file case against innocents.
Now impose case against these goondas and let's see how they will react..
If These terrorists warns means don't worry. If they strike and do any other terrorist acts, then shoot them. Automatically Dakshina kannada will become peaceful district like before.
NIA It is Narendra Interests adopting Agency.
They killed karkera, Good police inspectors everywhere Ex. Bathla house attack, etc.
They are arresting whomever opposing RSS and their Terrorist organizations.
and Why not BJP ????????
its unfortunate that ...he included SDPI as a communal group ....its a POLITICAL party ...just because fighting for the rights of minorities and dalits . and killed by RSS government is adding and considering as communal parties ????????????????
RAI , UT and LOBO are behind this to add SDPI too in this list ...
and one more thing is that ... victim of RSS are all including RSS members ( some times RSS kills their own members to shut the mouth) .....now when RSS started to kill civilians in DK and NK....and Popular front started to protest against the same ....now govt added victims in the list to target ...
all though the RSS is the main cause for all ....only RSS should be targeted not PFI or SDPI
All drama baazi...
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Asslumalikum waRahmatullahi Wabarkatuhu.
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Good move,book all anti social elements for peaceful atmosphere in DK and Udupi, Let normal people live peacefully
first Police is showing its presence .....who were dead while processions and stone pelting by BD and other third class organizations .....
in fact Muslims dont pelt the stones or cow heads ...we have seen this in Shimoga and other places and as well as Bantwal ..where a viral video shows the reality ....
if P.O.L.I.C.E over come from its % pressure , then we can see some light of peace in the district .....
Asslamoalykum
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Well done police. Should punish this gundaas.
When Muslims do their job taught by prophet Muhammad pbuh ... EXPECT ALLAHs help. Never lose trust in ALLAH..
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