‘Karnataka will become revenue deficit state if Centre does not extend GST compensation period’

News Network
February 12, 2021

New Delhi, Feb 12: Karnataka - which is expected to have a debt of over Rs 4 lakh crore at the end of this fiscal year -  will become a revenue deficit state if the Centre does not extend the GST compensation period, Congress MP G C Chandrashekar said on Friday in the Rajya Sabha.      

6Participating in a debate on Budget 2021, Chandrashekar pointed out that the GST compensation provided to Karnataka since 2018-19 was very low despite the state being the third highest tax generator in the country.

At the time of implementation of the Goods and Services Tax (GST) on July 1, 2017, the Centre had promised to compensate states for loss of revenue for five years at an agreed formula.      

Chandrashekar said Karnataka is in a bad financial situation as its debt is rising every year and is expected to cross Rs 4 lakh crore this fiscal year from Rs 3.27 lakh crore in 2019-20.

The state's transportation department is struggling to pay salaries of its staff and could pay half salary in December 2020 and is yet to decide for January, he said, adding that in the current situation it can only afford fuel for buses.  

Even the Bengaluru Metropolitan Transport Corporation (BMTC) is considering borrowing Rs 250 crore, while the transportation department has already mortgaged BMTC head office and is mulling mortgaging more assets, he added.      

"If this situation continues and the GST compensation period is not extended, then Karnataka will move from revenue surplus state to revenue deficit state. Then money will have to be borrowed to pay salaries and administrative costs leaving development activities," Chandrashekar noted.    

Expressing concern over low GST compensation given to Karnataka, the Congress leader said the state had contributed Rs 79,000 crore GST revenue in 2018-19 but in return got only Rs 10,754 crore as compensation. Similarly in 2019-20, the state contributed Rs 84,000 crore GST revenue and received Rs 16,628 crore compensation.    

For 2020-21, the revised estimate shows GST compensation to Karnataka at Rs 7,900 crore, less than Rs 28,000 crore budgeted as GST divulsion, he said.    

Further, he said the government has not given the special grant of Rs 5,495 crore for 2020-21 despite being recommended by the 15th Finance Commission to offset the losses.    

While noting that the Centre has failed to fulfill the promises it made, the Congress leader said suburban rail project to ease Bengaluru traffic was announced in 2018 but work has not yet commenced. The promise of conducting banking exams in regional languages has also not been kept. 

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News Network
January 14,2025

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New Delhi: Social media giant Meta is set to get a summons from a Parliamentary Standing Committee over its boss Mark Zuckerberg's remark on the 2024 Indian general election. Nishikant Dubey, BJP MP and chairman of the House panel on Communication and Information Technology, said Meta would be summoned on grounds of spreading misinformation.

"Misinformation on a democratic country maligns its image. The organisation would have to apologise to the Parliament and the people here for this mistake," Mr Dubey said in a post on X.

In a podcast on January 10, the 40-year-old Facebook co-founder said the Covid pandemic had led to an erosion of trust in incumbent governments the world over. He incorrectly cited India's example in this connection. "2024 was a very big election year around the world and all these countries, India, had elections. The incumbents basically lost every single one. There is some sort of a global phenomenon - whether it was because of inflation or the economic policies to deal with Covid or just how the governments dealt with Covid. It seems to have had this effect that's global," he said.

Soon after, Union Minister Ashwini Vaishnaw fact-checked Zuckerberg's remark and said the people of India had reaffirmed their trust in the NDA led by Prime Minister Narendra Modi in the Lok Sabha election held last year.

"As the world's largest democracy, India conducted the 2024 elections with over 640 million voters. People of India reaffirmed their trust in NDA led by PM @narendramodi Ji's leadership. Mr. Zuckerberg's claim that most incumbent governments, including India in 2024 elections, lost post-COVID is factually incorrect," Mr Vaishnaw, who handles portfolios of Railways, Information and Broadcasting and Electronics and Information Technology in the Modi 3.0 government, said in a post on X.

"From free food for 800 million, 2.2 billion free vaccines, and aid to nations worldwide during COVID, to leading India as the fastest-growing major economy, PM Modi's decisive 3rd-term victory is a testament to good governance and public trust. Meta, it's disappointing to see misinformation from Mr. Zuckerberg himself. Let's uphold facts and credibility," he added.

The ruling BJP, which had scored thumping victories in the 2014 and 2019 Lok Sabha polls, suffered some setbacks in the general election last year and ended below the majority mark. The NDA alliance, however, crossed the magic figure comfortably with key allies bolstering the BJP's numbers. A united Opposition led by the Congress did make gains, but fell well short of the numbers required to turn the tables. With Modi 3.0, Prime Minister Modi became only the second Indian Prime Minister after Jawaharlal Nehru to get the top post for three consecutive terms.

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News Network
January 4,2025

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Bengaluru, Jan 4: Kannada star Dr Shivarajkumar, son of Kannada film legend Dr Rajkumar, has been discharged from the hospital in Miami, US, following complete recovery from cancer, family sources confirmed on Saturday.

Nivedita, Shivarajkumar’s daughter, has shared a picture showing the actor and family in a relaxed mode. Sources further stated that Shivarajkumar will be in the US for follow-ups and resting for one month and he will be back for the shooting by Feb first or the second week.

Shivarajkumar is expected to begin shooting of the Telugu superstar Ramcharan-starrer pan India movie soon. 

Earlier, Shivarajkumar shared a video from the US on the first day of 2025, detailing his journey of overcoming cancer and assuring fans of his return.

In the video, he conveyed his New Year wishes to everyone and said, “I am hesitant to speak as I might get emotional at this moment. Leaving Karnataka was a very emotional experience for me. Under these circumstances, fear is inevitable, but the support of my fans has significantly reduced it.”

He continued, “The way the doctors took care of me, gave me immense courage. While shooting for the movie ‘45’, I underwent chemotherapy and even filmed the climax fight scene. As the date to leave for the US for treatment approached, I became anxious. However, my wife Geetha and daughter Nivedita stood by me throughout.”

“Dr Manohar, who treated me, cared for me like a child. My urinary bladder has been replaced, but there is no need for anyone to panic. I am doing well and will be back with double the energy. I thank all my fans for their unwavering support,” Shivarajkumar assured.

Geetha Shivarajkumar, his wife, who had appeared in the video alongside him, stated that all the medical reports had come back negative, and it was officially declared that Shivarajkumar is cancer-free. “He recovered because of the blessings of his fans, and I will never forget this,” she said.

The actor underwent surgery at a hospital in Miami, US, where his cancerous bladder was removed. According to the surgeon, Dr Murugesh Manoharan, an artificial bladder was created using Shivarajkumar’s intestine.

In November, Shivarajkumar had spoken publicly about his illness, acknowledging that he was human like everyone else. While he didn’t disclose it was cancer at the time, he said, “At the end of the day, I am a human being. I have a health issue and am currently undergoing treatment for it. I have completed a couple of treatment sessions, and a few more are pending. After that, I will undergo surgery, either in India or the US.”

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News Network
January 9,2025

Mangaluru: In a significant development, Mescom has proposed a phased electricity tariff hike starting with Rs 0.70 per unit for the fiscal year 2025-26. The proposal has been submitted to the Karnataka Electricity Regulatory Commission (KERC) for approval, signaling a potential increase in electricity costs for consumers.

Mescom emphasized that the current tariff structure is insufficient to meet operational expenses and manage revenue effectively. To address this, the company has invited public objections to the proposed hike.

Currently, the electricity supply cost is Rs 9.23 per unit, while the consumer tariff stands at Rs 8.53 per unit, leading to a shortfall of Rs 0.70 per unit. For the financial year 2023-24, Mescom reported revenue of Rs 5,924.73 crore against an expenditure of Rs 6,310.39 crore, resulting in a deficit of Rs 367.66 crore. For the 2025-26 fiscal year, projected revenue is Rs 5,850.81 crore, with an actual requirement of Rs 5,961.63 crore, creating a deficit of Rs 110.82 crore.

In a first, Mescom has submitted a multi-year tariff revision proposal to KERC. The plan outlines a hike of Rs 0.70 per unit for 2025-26, followed by Rs 0.37 per unit for 2026-27 and Rs 0.54 per unit for 2027-28.

"An increase in electricity tariff is inevitable," stated Jayakumar R, Managing Director of Mescom. "Mescom has submitted a proposal in this regard to KERC."

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