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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All that is on earth will perish, but face of your Lord will abide (forever) full of majesty, bounty and honor - Holy Qur'an 55:26-27
Nobody like rulers, bureaucrat or any citizen is bothered or cares such accident specially in Mangalore.
Human lives have no value specially for 2wheelers.
We are talking many projects in our area.
This is daily disaster. If we wish we can prevent such accidents with some good planning.
Such accidents are not UNPREVENTABLE.
If we want to allow our people to use 2wheelers, first we should plant to prevent and how to escape from these accidents.
Otherwise we all should by law or by force avoid using such vehicles.
At least our leaders in the city like DC, SP, RTO, MP, MLAs, Ministers, all those who use 2wheeler, please wake up and do the doable thing to save our people's lives.
Sad incident....... RIP
RIP... Feeling very sad... :-(
we CONDOLE but anybody thinking about death and do GOOD and stop evil... those who do good & recognise the true CREATOR, and submit to him to find the everlasting heaven.. which is the gift that God gives those who recognize him & follow his & his prophet's command..
My heartfelt condolences to you and your family. I will surely miss the presence of a truly loveable and kind person.
I am deeply saddened by the loss that you and your family have encountered. My condolences
It’s terrible to hear about, my sincere sympathy to your family.
this bus drivers are very rude on the road, put him behind bar for atleast 20years. he is a real murderer.
You and your family are in our prayers. Sorry to hear of your loss mam.
Our hearts are saddened by your loss and our thoughts and prayers are with you
My deepest condolences for your family's loss.
really sad, she s one of the good lecture in our college, we really gona miss her a alot. love u mam
Heartfelt condolence to the family, nobody can pay the loss to the family.
JESUS SAID :
The father is greater than I - John 14:28
The Lord our God is ONE LORD - Mark 12:29
By myself I can do nothing - John 5:30
I ascend to my Father & Your Father - John 20:17
PAUL SAID :
Jesus is equal to the father
God exists as 3 persons
Jesus is all powerful
Jesus is the only son of God..
Recognize Who speaks WHAT? A thought for the thinking Soul.
Really Tragic ! just before 6 months she joined as a lecture in agnes all her dream went in vain because of this half finished road.
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