BENGALURU: Amid the obvious facts surrounding the preparations of Budget 2020-21, a serious dent to the finances by way of shortfall in GST compensation and under devolution of funds, chief minister BS Yediyurappa on Thursday projected he had done the best he could with the existing revenue of the state exchequer.
While claiming he had nothing to hide in this regard and that more efforts will be made to secure justice to the state, Yediyurappa said his budget for 2020-21 was a pro-farmer and one with foresight for the development of Karnataka.
Excerpts from his interaction with the media:
Q) Your thoughts on the budget...
A) The budget has been an agricultural and pro-farmer budget with a long term focus on the development of Karnataka. We have given enought and more allocation to departments that have potential, including that for tourism with Rs 500 crore and irrigation projects like Kalasa-Banduri and Yettinahole lift irrigation project.
Q) But there has been a lot of concerns over the shortfall in central government funds and increasing expenditure...
A) I admit there has been a shortfall. We have nothing to hide. Karnataka has not received adequate funds from the centre and less than what we had anticipated. GST compensation has also been low, and the overall lack of central government funds amounts to shortfall of Rs 15,000 crore for the fiscal. At the other end, due to debt repayment, our expenditure has gone up by Rs 12,000 crore.
Q) What is the expected revenue from the increase in taxes on petrol and diesel, motor vehicles and excise?
A) We are expecting a decent amount of money from the revenue collection...
ISN Prasad (addl chief secy (finance)): To speak on behalf of the government, I would say the revenue collection will be in the range of Rs 1,500 crore from hike in petrol and diesel prices and Rs 1,200 crore by way of 6 per cent hike in additional excise duty. (Transport dept taxes are likely to be around Rs 6,00 crore-Rs 800 crore)
Q) Is the state government not going to pursue the shortfall in GST compensations and loss of funding under the 15th finance commission?
A) We have already written several letters and submitted a memorandum to the 15th finance commission in this regard. Our representative, home minister Basavaraj Bommai, will also be visiting Delhi to attend the GST council meeting and will once again raise the issue in this regard. We will make all efforts to ensure justice is meted out to Karnataka.
Q) There has been a dip in the growth rate of Karnataka by close to one per cent, with even sectors slowing down...
A) You must understand there is a slowdown at the national level, and the global market. We are trying to manage the show with the existing finances.
While claiming he had nothing to hide in this regard and that more efforts will be made to secure justice to the state, Yediyurappa said his budget for 2020-21 was a pro-farmer and one with foresight for the development of Karnataka.
Excerpts from his interaction with the media:
Q) Your thoughts on the budget...
A) The budget has been an agricultural and pro-farmer budget with a long term focus on the development of Karnataka. We have given enought and more allocation to departments that have potential, including that for tourism with Rs 500 crore and irrigation projects like Kalasa-Banduri and Yettinahole lift irrigation project.
Q) But there has been a lot of concerns over the shortfall in central government funds and increasing expenditure...
A) I admit there has been a shortfall. We have nothing to hide. Karnataka has not received adequate funds from the centre and less than what we had anticipated. GST compensation has also been low, and the overall lack of central government funds amounts to shortfall of Rs 15,000 crore for the fiscal. At the other end, due to debt repayment, our expenditure has gone up by Rs 12,000 crore.
Q) What is the expected revenue from the increase in taxes on petrol and diesel, motor vehicles and excise?
A) We are expecting a decent amount of money from the revenue collection...
ISN Prasad (addl chief secy (finance)): To speak on behalf of the government, I would say the revenue collection will be in the range of Rs 1,500 crore from hike in petrol and diesel prices and Rs 1,200 crore by way of 6 per cent hike in additional excise duty. (Transport dept taxes are likely to be around Rs 6,00 crore-Rs 800 crore)
Q) Is the state government not going to pursue the shortfall in GST compensations and loss of funding under the 15th finance commission?
A) We have already written several letters and submitted a memorandum to the 15th finance commission in this regard. Our representative, home minister Basavaraj Bommai, will also be visiting Delhi to attend the GST council meeting and will once again raise the issue in this regard. We will make all efforts to ensure justice is meted out to Karnataka.
Q) There has been a dip in the growth rate of Karnataka by close to one per cent, with even sectors slowing down...
A) You must understand there is a slowdown at the national level, and the global market. We are trying to manage the show with the existing finances.
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