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
India need back to ballet revolution or face new constitution in future. EVM votes for modi on all states.
Cong. Govt was very good and fulfilled all the promises, good in administration and Overall development and one of the top most Govt in India, and list goes. but still BJP win the election in spite of corrupt leaders, hate mongers and looters. How it is possible?
What is the Reason? Unknown? Think of it. there is no Anti Cong. Ale, in karnataka
There is no any major complaint against rulers during periods. one of the best performed govt.
It is very difficult to think that people of karnataka is not ignorant and hate mongers
If we analyse the Reasons may be
1) People may not concern about Janakeeya govt and development work
2)EVM magic may be?
it is not possible to prove EVM tampering because it is highly technical and Election commission and all its engineers may be fully controlled by Sangh Parivar. so there is no value for complaint.
To whom we complaint?
It could be hidden agenda to rule India and its state through EVM. even supreme court and justice is loosing its value. Democracy is almost in end stage
There is a lesson to think. Analyse....
Think......think.......think...... think
Find out the reason......
No doubt it is EVM tampering...
EVM bluetooth hack played major role in Karnataka election... no people in the world will vote for corrupt party man..this is kill of democracy & raise of evil in india ...this will only end if indian involve in war or people revelotion against government...now more midclass people will soon become poor..no job..no development..no peace...no justice...most important save your daughter from evil people of BJP...
Anti Hindu Government Kicked out. This is what happens if you seek votes only from minority.
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