State is now Bankrupt. 20,000 cr fund cuts. Budget increases taxes on Petrol, Diesel & Alcohol
Chief Minister BS Yediyurappa announced tax on petrol would be increased from 32 percent to 35 percent and diesel from 21 per cent to 24 percent from 1st April 2020. “For the year 2020-21, a total amount of Rs 55,732 crore is provided for stimulating economic growth sector”, the Chief Minister said.
8,000 Crore Shortfall In Central Funds: CM BS Yediyurappa In Karnataka Budget Speech
Karnataka Chief Minister BS Yedyiurappa (File)Bengaluru:
Karnataka Chief Minister BS Yediyurappa presented the state budget, the seventh occasion he has done so, in the Assembly today. Mr Yediyurappa, who was sworn in as Chief Minister in July last year, after the dramatic fall of the 14-month-old Congress-Janata Dal Secular coalition government, began by praising some of Prime Minister Narendra Modi’s policies.
Following this the veteran BJP leader highlighted shortfall in funds the state had expected from the centre, with specific focus on the state’s share in central taxes under the 15th Finance Commission; this had reduced funding by more than Rs 8,000 crores.
A further Rs 11,000 crores is pending from GST (goods and services tax) collection by the centre; states had been promised compensation for a period of five years after GST was implemented in 2017 due to a loss of revenue. The shortfall comes despite the centre collecting over Rs 1 lakh crores in December, the fifth time it had crossed that mark in 2019.
Having raised these financial challenges at the start of his speech, the Chief Minister then revealed his plans for the farm sector, which was hit by both floods and drought last year.
In December last year the state government sent the centre an estimate of Rs 35,161 crores for damages from floods alone. The BJP government in the state was criticised by the opposition after PM Modi and the BJP-led centre were seen to be slow in responding.
BS Yediyurappa said agriculture and rehabilitation for those hit by floods will be top priority and acknowledged financial constraints this fiscal.