Revenue generation in state set to shrug off note-ban impact

February 18, 2017

Bengaluru, Feb 18: Exactly 100 days after Prime Minister Narendra Modi demonetised high-denomination banknotes, the apprehension that the decision will severely impact Karnataka’s revenue collections seems to have subsided.

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Feedback being obtained by Chief Minister Siddaramaiah, who also holds the finance portfolio, indicates that except for stamps and registration, the other three revenue-generating departments — commercial taxes, state excise and transport — will meet their budgetary target for 2016-17. In December, the government had anticipated a shortfall of Rs 3,000 crore by the end of the current fiscal year. But that is proving to be unfounded.

On Thursday, Siddaramaiah started holding pre-budget interactive meetings with trade associations, farmers and other stakeholders. Sources in the Finance Department said the Commercial Taxes Department, Karnataka’s largest revenue generator, would not only meet its budgetary target of Rs 51,338 crore but also register a 13%?growth. Similarly, the Excise Department will meet its target. The sources said demonetisation did not impact these departments as all the remittances were made by traders electronically. The sale of products and liquor did not see much of a decline and does not involve high-value transactions.

The Transport Department did take a hit, but the collections are improving now. As regards property registrations, the decline in revenue had begun by the end of October — much before demonetisation — as the government’s drive against encroachments on stormwater drains in Bengaluru hit the sale of apartments in a big way.

Siddaramaiah will present his 12th budget (a record in the state) on March 17 and it is largely expected to be a populist one. This will be the Congress government’s last full-fledged budget before the Assembly elections next year. Siddaramaiah is expected to announce some succour to farmers, who are reeling under severe drought, welfare schemes for Ahinda communities (Kannada acronym for OBCs,?Dalits and minorities) as in the previous years and hike the quantity of foodgrains under the Anna Bhagya scheme and milk to schoolchildren five days a week.

Wishlist given to CM on Friday

Federation of Karnataka Chambers of Commerce and Industry

n Abolition of trade licence should be applicable to all business sectors.

n Allot up to 2 acres of industrial land to micro and small enterprises on lease-cum-sale basis.

n Develop Bengaluru as a mega city.

n Reduce Agriculture Produce Marketing Centre (APMC) cess from 1.5% to 0.5%.

n Promote e-wallets for digital transactions.

Karnataka Small Scale Industries Association (Kassia)

Set up a separate directorate for micro and small enterprises.

Set up more industrial townships.

Provide loans at concessional rates of interest to women enterprises.

Provide houses to industrial workers.

Karnataka Film Chamber of Commerce

Cap movie tickets in multiplexes at Rs 150.

Reserve 50%?of shows in multiplexes for Kannada films.

Don’t impose advertisement tax on banners and posters displayed inside cinema halls.

Develop a layout near Mysuru for people from film fraternity.

Karnataka Pradesh Hotel and Restaurants Association

Reduce VAT on food items served in hotels from

4.5% to 2%.

Set up exhibition centres in Mysuru and Hubballi on the lines of Bangalore International Exhibition Centre.

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News Network
March 15,2024

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Bengaluru, Mar 15: Work from home to using toilets in malls, residents of India's 'Silicon Valley' Bengaluru are exploring all options to combat the unprecedented water crisis. People across various neighbourhoods have been forced to order food from restaurants and take bath on alternate days due to the water scarcity.

Even those in high-rise apartments equipped with water harvesting systems now find themselves reliant on water tankers for basic needs, leading to stringent usage restrictions.

Eateries are mulling over use of disposable cups, glasses and plates to avoid excess use of water.

Educational institutions are also feeling the pinch. Recently, a coaching centre in the city asked its students to attend classes online due to an 'emergency' for a week. Similarly, a school on Bannerghatta Road was also closed, asking students to attend classes online just like they did during the Covid pandemic.

Residents have come with up new methods to try and conserve water. With temperature rising, it is difficult to avoid a daily shower but they are left with no option but to take bath on alternative days, said Sujatha, a resident of KR Puram.

"What to do? Clean vessels, cook food, wash clothes....so, we have started using paper plates, that way we have cut down on our water usage. And we order food twice a week. We are using the washing machine only once in a week now," she said.

Some others have resorted to visiting a mall to take a shower or use the toilet facilities.

Lakshmi V, an IT professional living in Singasandra, has been requesting her firm to allow WFH option so that she and her family can temporarily shift to her native place in Tiruchirapalli in Tamil Nadu until the situation becomes better.

"If the situation persists, we are thinking of seeking a work from home option. We are planning to move to our native place in Tamil Nadu temporarily till rain arrives here," she said.

Bengaluru primarily gets its water supply from two sources - Cauvery river and groundwater. For most non-drinking uses, recycled water processed by sewage treatment plants is used. With no rain for a while now, the primary sources have been stretched to their limits. Bengaluru needs 2,600-2,800 million litres of water daily, and the current supply is half of what's required. The result is a daily struggle for the city's residents.

The brunt is also being borne by people living in the outskirts of Bengaluru, especially in 110 villages that were merged with the city in 2007.

The crisis has also turned into a political battle between the state's ruling Congress government and the opposition BJP with Lok Sabha just weeks away. While the BJP has held several protests blaming the government, the Congress has accused the BJP-ruled federal government of not providing financial assistance to drought-hit Karnataka.

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News Network
March 19,2024

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Bengaluru, Mar 19: Former Karnataka Chief Minister Basavaraj Bommai on Monday said that the Congress will split in three months after the upcoming Lok Sabha polls and its impact will be visible on the Siddaramaiah-led state government.

"Due to internal squabbles, the state government will not last long," the BJP leader said.

Talking to reporters on Monday, he said the sitting MP from the Gadag-Haveri constituency, Shivakumar Udasi, has done a lot of development work and implemented the Central government's schemes effectively.

"Prime Minister Narendra Modi will surely become the PM for the third time. The overall response has been good in the Gadag-Haveri Lok Sabha constituency," the former Karnataka chief minister said.

Asked if he was contesting the election in a half-hearted manner in the Gadag-Haveri seat, Bommai said "such a question does not arise when the party's high command gives instructions".

He said he would respect his opponent and not take anyone lightly. 

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News Network
March 28,2024

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Mangaluru, Mar 28: A fish meal factory in the Baikampady Industrial area in Mangaluru was gutted in a fire incident on Thursday, officials said.

The factory is owned by the company 'Shihar Enterprises', they said.

According to the locals, the fire was first noticed at 4.45 am today, which was immediately reported to the fire department.

The fire engines reached the spot and tried to douse the fire, but it had already spread to other parts of the factory. After almost four hours of fire-fighting operation, the blaze was completely doused, officials.

The reason for the blaze is still being probed, the fire department officials said, adding that they suspect an electric short circuit could have triggered it.

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