‘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
April 24,2024

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Campaigning for 14 Lok Sabha seats in Karnataka going to polls in the first phase on April 26 will come to an end on Wednesday evening.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for this round of voting in most of the southern and coastal districts.

It is a straight electoral contest between the ruling Congress and the BJP-Janata Dal (Secular) combine in the State.

While the Congress is contesting in all 14 seats, BJP has fielded nominees in 11, and its alliance partner JD(S) in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections will be held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

The intense campaigning for the past about a month saw Prime Minister Narendra Modi and Home Minister Amit Shah leading from the front for the BJP, holding rallies and roadshows. BJP President J P Nadda, some Union Ministers and Goa Chief Minister Pramod Sawant too pitched in.

Veteran BJP leader and former Chief Minister B S Yediyurappa and the party's state president B Y Vijayendra also campaigned extensively.

Congress president M Mallikarjun Kharge, senior leaders Rahul Gandhi and Priyanka Gandhi, Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar and Telangana Chief Minister A Revanth Reddy were among the prominent names who led the charge for the party.

And for the JD(S), it was the 90-year-old party patriarch and former Prime Minister H D Deve Gowda and former Chief Minister H D Kumaraswamy, who led the campaign.

Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central and Dakshina Kannada has the least number - nine.

Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket, erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, also from the BJP, and state Congress President Shivakumar's brother and MP D K Suresh from Bangalore Rural, are among the prominent candidates in the fray in the first phase.

The state has a total of 28 Lok Sabha segments. The remaining 14 constituencies, mostly in the northern districts, will go to polls on May seven.

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News Network
April 25,2024

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Kolkata: Defence Minister Rajnath Singh or Transport Minister Nitin Gadkari could have been the prime minister, said Trinamool Congress supremo and West Bengal chief minister Mamata Banerjee, subtly taking a dig at the Bharatiya Janata Party leaders relegated to the second rung of the organisational echelons.

Banerjee’s nephew and the TMC general secretary Abhishek Banerjee, on the other hand, attempted to stoke trouble within the BJP’s unit in West Bengal, saying that at least 10 more state legislators of the saffron party were keen to join his party and in touch with him.

"You (Rajnath Singh) are surviving at the mercy of Modi (Prime Minister Narendra Modi). You are saluting Modi daily to save your chair. You or Nitin Gadkari could have been the PM (prime minister) today," the TMC supremo said in an election rally at Ausgram in Bolpur Lok Sabha constituency on Wednesday. "There would have been no problem...at least there would have been a gentleman in the chair who knows minimum courtesy," she added.

Banerjee was responding to Singh’s diatribe against herself and the TMC government led by her. The defence minister, who had addressed an election rally in Murshidabad on Sunday, had criticised the TMC government for alleged corruption and anarchy in West Bengal.

Singh had referred to the attacks on the Enforcement Directorate officials on January 5 during a raid at the residence of the TMC leader Sheikh Shahjahan at Sandeshkhali in North 24 Parganas district of the state. It was followed by an agitation by local women protesting against atrocities by Shahjahan and his aides known to be owing allegiance to the TMC.

Singh questioned how the state government, led by a woman as the chief minister, could allow such atrocities on women to take place. He went on to say that Banerjee had lost all ‘mamata’ (affection and compassion) for people.

Banerjee shared a cordial relationship with Singh since the days when they both were ministers in the central government led by then Prime Minister Atal Bihari Vajpayee. Singh avoided personally criticising Banerjee in the past.

He, however, went ballistic against Banerjee on Sunday, triggering a strong response from the TMC supremo on Wednesday.

"The BJP is trying to get into the game of breaking parties, but they can't win in it. They poached two of our MPs, and we replied by taking two of their MPs, Arjun Singh and Babul Supriyo. Recently, by using ED raids, they inducted Tapas Ray. At least 10 top leaders of the BJP are in the queue to join the TMC," Abhishek said in another election rally in Murshidabad on Wednesday.

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News Network
April 26,2024

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An Indian-origin woman studying at the prestigious Princeton University in the US is among two students arrested over pro-Palestine protests on the campus, reports student and alumni newspapers.

Tamil Nadu-born Achinthya Sivalingan and Hassan Sayed were arrested after the protesters set up tents for an encampment in a university courtyard early Thursday morning, according to the Princeton Alumni Weekly (PAW).

The two graduate students were arrested on charge of trespassing and have been "immediately barred from the campus", said Jennifer Morrill, a university spokesperson, adding that setting up tents on the campus violated university policy.

However, they have not been evicted and will be allowed into their housing, another varsity spokesperson Michael Hotchkiss confirmed to the Daily Princetonian.

Ms Sivalingam is a student of Masters in Public Affairs in International Development at Princeton while Mr Sayed is a PhD candidate there.

In a statement, Morill said the students were given "repeated warnings from the Department of Public Safety to cease the activity and leave the area" and they now face disciplinary action. After their arrest, the other protesters "voluntarily" packed away their camping gear, she added.

Hotchkiss said the university did not evict anyone on Thursday and that the university allows students barred from campus to stay in their university-owned housing.

The undergraduate students were warned against occupation and encampment exercises in an email Wednesday, according to the Daily Princetonian.

Princeton students, faculty and community members, and even outsiders were part of the demonstration, the PAW cited organizers of the protest as saying. Large, white tents were set up nearby for upcoming reunions and other events.

A student who chose to be identified only as Urvi termed the arrests as "violent", which included the students being zip-tied around their wrists. The university, however, contested this and said the officers did not use any force and the arrests were made without any resistance.

Pro-Palestine protests have rocked the top US universities as thousands of students have hit their campuses to demonstrate against the Gaza deaths due to Israel’s inhuman military operation. 

The protests, which began at Columbia University in New York, have to colleges across the country and saw hundreds of students confronting cops and raising pro-Palestine slogans. The protesters have been calling on their universities to divest from companies that profit from the Gaza war and advocate an immediate ceasefire.

Who is Achinthya Sivalingan?

1. Achinthya Sivalingan was born in Coimbatore, Tamil Nadu and was raised in Columbus, Ohio.

2. She is pursuing a Master of Public Affairs (MPA) degree in International Development at Princeton University. Before that, Ms Sivalingan studied world politics and economics at Ohio State University and was also an Intern at Harvard Law School. 

3. Ms Sivalingan has significant experience in policy issues, having worked with civil society organisations, the legal system, politics, movement building, and private philanthropy. Her previous roles include supporting policy and advocacy work for climate adaptation, agricultural development, and nutrition portfolios at the Bill and Melinda Gates Foundation. 

4. Ms Sivalingan has worked on a congressional campaign in Ohio's third district and also contributed to land rights and policy initiatives in India at the Centre for Policy Research. 

5. She has been banned from Princeton over pro-Palestine protests and is now facing disciplinary action. 

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