During the 15th Budget presentation in the Karnataka assembly, Chief Minister Siddaramaiah criticised the Centre for what he deemed as the “unscientific implementation of GST,” resulting in a staggering loss of Rs.59,000 crore for the state. Karnataka Chief Minister said “Loss of Rs.59,274 Crore was incurred by Karnataka due to unscientific implementation of GST in last 7 years. During 6 years of 15th Finance Commission, loss to Karnataka under devolution of Central taxes is estimated to be Rs.62,098 crore” said, CM Siddaramaiah in the budget speech as quoted by PTI.
The state’s budget outlay stands at Rs.3.71 lakh crore this year, CM Siddaramaiah said. He added that Karnataka’s economy is estimated to grow at 6.6% in FY 2025.
Karnataka government earmarked Rs.52,000 crore in the “hands of people during 2024-25” through five guarantees (Shakti, Gruhajyoti, Gruhalakshmi, Yuvanidhi and Annabhagya).
Out of the anticipated GST revenue, only Rs.3,26,764 crore was amassed. In response to the GST deficit of Rs.1,65,532 crore, the Central government disbursed Rs.1,06,258 crore as compensation to the state. Consequently, the state suffered a loss of Rs.59,274 crore due to the unscientific execution of GST over the past seven years, claimed Siddaramaiah.
Read more at: Livemint
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