Canindia News

Yediyurappa presents surplus budget despite revenue shortfall

Bengaluru, March 5 (IANS) Karnataka Chief Minister B.S. Yediyurappa presented a surplus budget for fiscal 2020-21 despite Rs 11,887 crore reduction in central funds to the state for fiscal 2019-20.

“The revenue surplus is estimated to be Rs 143 crore on revenue account for the ensuing fiscal (2020-21), as it increased to Rs 285 crore for fiscal 2019-20, as per revised estimates and Rs 258 crore from budget estimates,” Yediyurappa said while presenting the Budget in the Assembly.

On capital account too, the ensuing fiscal (2020-21) is expected to close with a surplus of Rs 493 crore as against Rs 721 crore in the outgoing fiscal (2019-20), as per revised estimates and from a deficit of Rs 687 crore (budget estimate).

“As the state’s share in Central taxes declined, the reduction is Rs 8,887 crore to Rs 30,919 crore (revised estimate) from Rs 39,806 crore (budget estimates) for the fiscal 2019-20.

“Due to slump in collection from the Goods and Services Tax (GST) regime, the compensation to the state will also be Rs 3,000 crore less for this fiscal,” Yediyurappa told the members in his 100-minute budget speech.

Admitting that the fiscal under review (2019-20) has been a difficult year to reach the Budget targets, the Chief Minister said the seven-month-old BJP government had to slash the expenditure of many departments.

“As per the 15th Finance Commission interim report, the reduction in the state’s share of Central taxes will be Rs 11,215 crore for the new fiscal (2020-21).

“Though the 14th Finance Commission had fixed the state’s share out of total central collection at 4.7 per cent, the 15th panel has reduced it to 3.64 per cent,” he pointed out.

“The state’s share of Central taxes is estimated to be Rs 28,591 crore for the ensuing fiscal,” said the Chief Minister, who also holds the finance portfolio.

Non-tax revenue also declined Rs 547 crore from budget estimates of Rs 8,055 crore to Rs 7,508 crore in 2019-20. It is expected to be Rs 7,768 crore for 2020-21.

“Central grants, however, increased to Rs 19,840 crore from budget estimated Rs 15,008 crore for 2019-20. It is expected to be Rs 15,455 crore in 2020-21,” the Chief Minister noted.

The state’s own tax revenue, including GST compensation, for the next fiscal is estimated to be Rs 1,28,107 crore, an increase of 7.7 per cent over the revised estimates of 2019-20.

As against the 7.8 per cent gross state domestic product (GSDP) for 2018-19, the estimate for fiscal 2019-20 is expected to decline 1 per cent to 6.8 per growth rate by this month-end.

–IANS

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