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
Along with that, add Drs,vhp,rss,vhp
Every Indian knows that the most terrorist groups in India are RSS/BD/RS and other outfits of sangh parivar. Terrorists from these groups are spreading hatred between different communities and give hate speech, but no action is taken on them.
Why not the PFI, KFD, SDPI, NDF demands or protest against RSS,VHP to ban??? only this people have rights to demand for any organization Ban? Let PFI, KFD, SDPI, NDF make protest and demand for Ban. (for your FYI.. iam not related to any Organization)
Ashok, based on your own argument why cant the Govt ban both BJP & RSS for killing CPM workers in Kerala, murder in various jails and bomb explosions elsewhere in India? Common man have the same standard for the same crime.
Congratulations PFI and KFD. The RSS recommended that you are strong party who are fighting against communalism and goondaism.
They can't digest any one talking or standing against them.
Good Job .
We need just 2 strongest parties in India and rest should be banned once and for all.....no political parties doing any favor for human kind, they are all there to make money for them and their family members and relatives....that is all....if government wants to ban any kachira parties then clean up everything...no need...they are all anti religion and working against human kind...
Joke of the month..
PFI, KFD ok...RSS...Bajrang illa yaake...?
Add new comment