Karnataka fears massive revenue loss after currency chaos

November 16, 2016

Bengaluru, Nov 16: The Centre's move to demonetize high value currency notes threatens to derail Karnataka's revenue collection this financial year. Officials fear that the state might miss its revenue target by at least Rs 5,000-Rs 15,000 crore for the current fiscal. The move has already affected liquor sales, property transactions, and sale of new and used vehicles.

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"We are still assessing the impact and will get a clear picture by the weekend. We are certainly expecting some impact,'' said ISN Prasad, additional chief secretary, state finance department. "The government's revenues have taken a severe beating following the demonetization move. Whatever taxes were supposed to come to the state, including commercial taxes, sales taxes and all the revenues have been hampered. It will certainly have a huge impact on this fiscal's tax collection," said another finance department official.

The government's excise department has been the worst hit. The sale of foreign liquor has come down drastically in the past few days. A senior excise department official said: "Most of the excise revenue come from the sale of Indian Manufactured Foreign Liquor. Officials at government outlets have claimed that the sale has gone down by at least 50%."

The government had fixed an ambitious revenue target of Rs 16,510 crore for the excise department this year following a 25% hike in taxes on liquor. The government has collected only about Rs 7,500 crore so far. "People have stopped buying liquor, especially the expensive ones, due to shortage of high-value currency," added the official.

The revenue target for the stamps and registration department had been fixed at a higher Rs 9,100 crore for the current fiscal. Most of this amount comes from revenue layouts through stamp duty and property registration, which has completely stopped since November 8. "Bengaluru is a big market for secondary real estate, which traditionally works on 60:40 white and black money ratio. Ban on transaction of black money has badly hit property registration," said a senior official of the stamps and registration department.

Comments

Althaf
 - 
Wednesday, 16 Nov 2016

Not only in karnataka All over india it will effect.

Skazi
 - 
Wednesday, 16 Nov 2016

let the Govt reduce the Value of lands for registration purposes... then the govt will get back the revenues.... as the buyers will come forward in the real estate business .....
The govt does not apply its mind while fixing the land values ... It goes by survey no.... whether the site has road connection or not,, the govt value is same for all sites ....

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News Network
January 3,2025

Mangaluru: The long-awaited DC office complex in Padil is nearing completion, with plans underway to inaugurate the facility during Chief Minister Siddaramaiah’s visit to Mangaluru for the State Olympics meet on January 17. Karnataka Legislative Assembly Speaker U T Khader inspected the site and emphasized the urgency of completing the ₹75 crore project within the set deadline.

“We aim to finish the work by January 10 so that the inauguration can align with the Chief Minister’s visit. However, the final decision will depend on the project’s readiness by then,” Khader stated during his site inspection.

The ambitious project, reflecting the rich Tulu Nadu heritage in its design, received administrative approval on April 28, 2015. Following delays, the work order was issued on February 3, 2018, and construction began on March 17, 2018. Khader assured that the building's traditional architecture will extend to its surroundings, including an aesthetically designed entrance gate.

Spread across 5.89 acres, the complex boasts a total plinth area of 21,054.88 sq m, encompassing multiple levels:

Basement: 4043.88 sq m
Ground Floor: 7553.36 sq m
First Floor: 4158.94 sq m
Second and Third Floors: 2561.28 sq m each
Roof 1 and 2: 88.07 sq m each

The facility aims to centralize government services by housing most departments—except Revenue and RDPR—under one roof. This initiative, Khader highlighted, will streamline operations, save time, and enhance convenience for both officials and the public.

"Officials have been directed to expedite the remaining work, ensuring its timely completion," he added, reaffirming the government’s commitment to creating a functional and visually iconic administrative hub for the region.

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News Network
December 31,2024

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From shocking sex scandals to high-profile scams and intense factional power struggles, Karnataka's political landscape in 2024 played out like a gripping thriller. The state's three dominant parties—Congress, BJP, and JD(S)—found themselves entangled in controversies, scandals, and unexpected alliances, keeping the political stage turbulent throughout the year.

Shocking Hassan Sex Scandal Hits JD(S)
The JD(S) faced a monumental crisis with the Hassan sex scandal involving its MP Prajwal Revanna. Allegations of sexual exploitation surfaced through pen drives containing incriminating videos, sending shockwaves across the nation. Revanna fled the country but was arrested on May 31 upon his return. The scandal not only embarrassed the JD(S) but also led to the party losing its stronghold in Hassan, a seat it had held since 1999.

Congress' Struggles with Scams and Infighting
The Congress, riding high after its 2023 Assembly poll victory, faced a series of setbacks. Chief Minister Siddaramaiah’s reputation as “Mr. Clean” was tarnished by allegations in the MUDA site-allotment scam, for which he is under court-ordered investigation. The Maharshi Valmiki Scheduled Tribes Development Corporation Limited scam also led to the resignation and arrest of Minister B Nagendra.

Adding to the Congress' woes, the BJP spotlighted a controversial marking of farmers' lands as Waqf properties, further intensifying the political storm. However, the Congress bounced back by sweeping three critical by-elections in Channapatna, Shiggaon, and Sandur, silencing critics and bolstering support for its flagship guarantee schemes.

BJP-JD(S) Alliance: A Rocky Path
The BJP and JD(S), forced into an alliance after 16 years, saw relative success in the 2024 Lok Sabha polls. While the BJP won 17 of the 25 seats it contested, the JD(S) secured two seats, enabling its state president H D Kumaraswamy to join the Modi 3.0 Cabinet.

However, the BJP faced its own internal strife, with factional tensions erupting after the appointment of B Y Vijayendra, son of B S Yediyurappa, as the state party president. MLA Basanagouda Patil Yatnal openly criticized Vijayendra’s leadership, earning a show-cause notice. Adding to the BJP’s troubles were sexual assault allegations against Yediyurappa and MLA Munirathna, which tarnished the party's image.

Power Tussle within Congress
Deputy Chief Minister D K Shivakumar’s ambitions for the top post grabbed headlines after a controversial interview where he hinted at an "agreement" for chief ministership. While Chief Minister Siddaramaiah denied such an arrangement, Shivakumar’s comments reignited debates about factionalism within the Congress.

Legislative Drama and Bitter Exchanges
The year ended with heated debates in the Belagavi session. The BJP cornered the Congress on the Waqf land issue, while Congress countered with statistical defenses. Tensions flared when Women and Child Development Minister Laxmi Hebbalkar accused BJP leader C T Ravi of using derogatory language against her, leading to Ravi's arrest and subsequent bail.

Karnataka in 2024 was a year of intense political drama, marked by scandals, power struggles, and shifting alliances—offering a preview of the state's evolving political dynamics in the years to come.

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News Network
January 8,2025

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Mangaluru, Jan 8: The serene beaches near Kulai Jetty under the limits of Surathkal police station turned into a scene of tragedy on Wednesday, January 8, as a group of four close friends saw their day of joy morph into heartbreak. 

Three young men lost their lives in the unforgiving waves, while one narrowly escaped death, saved by the heroic efforts of local fishermen.

The victims have been identified as: 

M. S. Manjunath (31), son of Shivlingappa, hailing from Upparigenahalli, Chitradurga district.

Shivakumar (30) from Shivamogga district.

Satyavelu (30) from JP Nagar, Bengaluru.

The sole survivor, Parameshwara (30), from Hangarga, Bidar district, now carries the weight of a harrowing ordeal and the devastating loss of his three closest friends.

These young men, all students of AMC Engineering College in Bengaluru, had embarked on a trip meant to create memories of joy and camaraderie. Driving overnight from Bengaluru, they reached Mangaluru on Wednesday morning. After breakfast at a local eatery, the group decided to visit the picturesque Kulai Jetty, seeking solace and adventure in the sea.

But their joyful outing took a tragic turn. While playing in the water, the four were caught in strong currents. Despite the swift intervention of local fishermen, only Parameshwara could be rescued in time. The lifeless bodies of Manjunath, Shivakumar, and Satyavelu were later found on the right side of the jetty, their dreams and futures cruelly cut short.

The Surathkal police, alerted to the incident, promptly arrived at the scene and began their investigation. The bodies were transported to AJ Hospital for post-mortem examinations, leaving their families and friends to grapple with the enormity of their loss.

A case has been registered at Surathkal Police Station. This incident serves as a stark reminder of the unpredictable and dangerous nature of the sea, urging visitors to prioritize safety above all else.

What was meant to be a day of joy has left a void that can never be filled, as three grieving families now face the unbearable pain of losing their loved ones.

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