Ahead of the Union Budget, Chief Minister Siddaramaiah has urged the Centre to release its dues and has referred to the economic conditions in the State owing to GST rate rationalization, increased social commitment, change in weather condition, and increasing urbanisation. The rate of growth of committed expenditure is faster than the State’s revenue receipts, he has pointed out.
Claiming that the rate of GST collection had declined to 5% from 12% after rationalisation of GST rates, he said in a letter that the State estimated a revenue loss of ₹5,000 crore this year and ₹9,000 crore annually from the next financial year. While the Centre, to offset the losses, has imposed cess on pan masala and excise duty on tobacco products, States do not have any such revenue raising opportunities. The State has requested the Central revenue stream to States on the lines of GST compensation, and urged the Centre to share the cess on pan masala and excise duty on tobacco equally with States. He also sought ₹5,300 crore for the Upper Bhadra project that has been announced by the Centre earlier.
Urging the Centre to release its remaining share in Jal Jeevan Mission, he pointed out that the Centre has so far released only ₹11,786 crore as against the State’s release of ₹24,598 crore. To ensure continuity of the scheme, the State’s release is more than ₹13,004 crore.
