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Business News/ Politics / News/  Karnataka lost 59,000 crore due to unscientific GST implementation: CM Siddaramaiah slams Centre
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Karnataka lost ₹59,000 crore due to unscientific GST implementation: CM Siddaramaiah slams Centre

Karnataka Chief Minister Siddaramaiah criticized the Centre for the unscientific implementation of GST, resulting in a loss of ₹59,000 crore for the state.

Bengaluru: Karnataka Chief Minister Siddaramaiah with a bag containing budget papers arrives at Vidhana Soudha, in Bengaluru (PTI)Premium
Bengaluru: Karnataka Chief Minister Siddaramaiah with a bag containing budget papers arrives at Vidhana Soudha, in Bengaluru (PTI)

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 59,000 crore for the state. Karnataka Chief Minister

"Loss of 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 62,098 crore" said, CM Siddaramaiah in the budget speech as quoted by PTI.

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The state's budget outlay stands at 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 52,000 crore in the "hands of people during 2024-25" through five guarantees (Shakti, Gruhajyoti, Gruhalakshmi, Yuvanidhi and Annabhagya).

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Out of the anticipated GST revenue, only 3,26,764 crore was amassed. In response to the GST deficit of 1,65,532 crore, the Central government disbursed 1,06,258 crore as compensation to the state. Consequently, the state suffered a loss of 59,274 crore due to the unscientific execution of GST over the past seven years, claimed Siddaramaiah.

The Congress-ruled Karnataka government has aimed to complete 3 lakh houses in 2024-25. On the PM Awaas Yojana, Karnataka CM said that the scheme has slowed down in the state as most of the beneficiaries could not afford to pay their contribution of 5 lakh. "Our Government has therefore decided to limit the contribution to be paid by the beneficiaries to one lakh rupees. The remaining beneficiary share of approximately 4 lakh will be provided by the Government," CM Siddaramaiah said.

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Published: 16 Feb 2024, 12:54 PM IST
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