‘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 13,2025

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Riyadh: The Indian Embassy in Riyadh hosted a grand Indian Community Interaction Program at its auditorium in the Diplomatic Quarter, attended by the Honorable Minister for Parliamentary and Minority Affairs, Shri Kiren Rijiju. The event, which commenced at 6 PM (KSA time) brought together a vibrant gathering of Indian community members, Embassy officials and dignitaries.

The Minister was warmly welcomed by the Indian community steering committee with a traditional Himachali cap and shawl, symbolizing Indian cultural richness and diversity. The Honorable Indian Ambassador to Saudi Arabia, Dr. Suhel Ajaz Khan, shared the dais. 

In his address, Shri Kiran Rijiju emphasized the growing strategic partnership between India and Saudi Arabia, describing it as critical for fostering mutual growth and supporting the well-being of the Indian diaspora. He remarked, “India and Saudi Arabia share ancient ties, which have evolved into a robust partnership spanning trade, education, technology and culture.”

“The Kingdom is not only home to 2.6 million Indians but also a key ally in advancing global stability and prosperity,” he said. With the Indian diaspora in Saudi Arabia being the second-largest globally, Shri Rijiju equated their number to the population of many nations.

Shri Rijiju underscored the shared commitment to strengthening cultural and economic links, which directly benefit the Indian community in Saudi Arabia and their families in India. 

He captivated the audience with his thoughtful address, expressing gratitude to the Indian diaspora for their invaluable contributions. Reflecting on his earlier visits to the Kingdom as a Member of Parliament and individual basis, he emphasized the significance of this trip as Minister for Parliamentary and Minority Affairs and it’s going to be helpful to the people, especially Hajjis and all Indian diasporas, who are living in the Kingdom. 

Hajj 2025 Preparations & Increase in Hajj Quota

A major highlight of Shri Rijiju’s address was the Government of India’s efforts to improve the Hajj experience for Indian pilgrims. He announced an increase in the Hajj quota for 2025 and introduced new guidelines aimed at ensuring safety, efficiency, and comfort, especially for elderly pilgrims, women and others. 

The Minister emphasized India’s collaboration with Saudi authorities to streamline travel, accommodation, and healthcare facilities for pilgrims, ensuring a hassle-free and spiritually fulfilling experience. He reiterated the government’s commitment to safeguarding the interests of Hajjis, reflecting India’s proactive approach to catering to the needs of its citizens abroad.

Rising Global Stature of India

Shri Rijiju also emphasized and spoke about India’s emergence as a global power. “Unlike a decade ago, India today is a center of global influence with strong ties to almost every nation; India is becoming a global center of power, linked to almost every nation,” he said. The world’s perception of India and Indians has transformed positively, and every Indian can now feel a profound sense of pride,” he stated.

Commendation for Embassy and Cultural Performances

The minister praised the Indian Embassy in Riyadh and the Consulate in Jeddah for their exceptional works including managing one of the busiest workloads among Indian missions globally, such as issuing around 600 passports daily. He also praised their active involvement in promoting bilateral relations.

The evening featured cultural performances by students from Indian International Schools in Riyadh. Classical dances, along with a special performance marking Vishwa Hindi Divas, captivated the audience. Shri Rijiju applauded the students for showcasing the richness of India’s linguistic and cultural diversity, emphasizing equal respect for all Indian languages such as Tamil, Malayalam, Kannada, Telugu, Marati, Rasthani, Manipuri, Dogra etc. 

The event concluded with the Minister distributing prizes to winners of various competitions, leaving attendees inspired and proud of their shared cultural roots. Dinesh Setia, First Secretary at the Indian Embassy, ensured the program’s seamless flow as the master of ceremonies.

The Indian community expressed gratitude to Shri Rijiju for his inspiring vision and praised the Embassy for hosting a memorable evening.

(Inputs from P.A. Hameed Padubidri, Riyadh)

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News Network
January 13,2025

Udupi: A resident of Karkala in Udupi district has accused five individuals of defrauding him of nearly Rs 2 crore under the guise of business partnerships.

Dawood Hakim, a resident of Ennehole in Marne village, Karkala, has filed a complaint stating that he operated a mobile sales and service business on Karkala Market Road for 15 years. He had known the accused for over two decades and trusted them implicitly.

According to Dawood, the accused convinced him to invest in multiple business ventures, including land dealings and a travel business, promising substantial returns and partnership benefits. Believing their assurances, Dawood reportedly handed over cash, gold, and a vehicle.

However, the promised profits never materialized, and the accused allegedly failed to return the money or assets. Dawood claims this deception has caused severe financial distress to him and his family, amounting to a loss of around Rs 2 crore.

A case has been registered at the CEN police station, and investigations are underway.

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News Network
January 8,2025

Bengaluru: In a sweeping anti-corruption operation, the Karnataka Lokayukta conducted simultaneous raids on the properties of eight government officials across eight districts on Wednesday. The raids, part of ongoing investigations into disproportionate assets cases, targeted over 20 locations linked to these officials.

According to Lokayukta sources, the coordinated operation spanned Bengaluru, Mandya, Bidar, Belagavi, Tumakuru, Gadag, Ballari, and Raichur. Properties of the following officials were under scrutiny:

Shobha – Joint Commissioner, Bengaluru Transport Department

S. N. Umesh – Health and Family Welfare Officer, Kadur

Ravindra – Inspector, Minor Irrigation and Groundwater Development Sub-Division, Bidar

Prakash Sridhar Gaikwad – Tahsildar, Khanapur

S. Raju – Retired RTO Officer, Tumakuru

Huchesh alias Huchappa – Assistant Executive Engineer, Gadag Municipality

R. H. Lokesh – Welfare Officer, Backward Class Department, Ballari

Huliraja – Junior Engineer (Electric), Raichur

Lokayukta officials are thoroughly examining documents, assets, cash, and other valuables found during the raids.

This operation is the Lokayukta’s first major crackdown in 2025. Notably, on December 12, the watchdog had unearthed disproportionate assets worth Rs 48.55 crore in raids on properties belonging to 10 government officials.

The Lokayukta’s intensified efforts signal its commitment to curbing corruption and ensuring accountability among government officials.

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