GST rationalisation by Centre led to Karnataka losing crores, couldn't present revenue surplus budget: CM Siddaramaiah

Davangere: Chief Minister Siddaramaiah informed that revenue surplus budget could not be presented due to the GST rationalisation by the Centre in September last year ahead of Bihar polls and Karnataka did not get fair GST compensation from the Centre.

Addressing media persons at MBA ground helipad, here on Thursday, he said, the Centre had reduced GST on many goods eyeing at Bihar polls. Hence, Karnataka had lost Rs 10,000 crore. As a result, the GST growth rate in Karnataka declined from 10% to 4%. The state would lose Rs 15,000 crore next year due to GST rationalisation. Besides, Rs 11,495 crore special grants were not given in the 15th finance commission, he charged.

He said, as per the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, fiscal deficit of the state should be less than 3% and Karnataka's is 2.95%. Loan borrowings must be 25% of the GDP and state's rate is 24.9%.

Union Minister Nirmala Sitharaman had announced that the Centre would provide grants of Rs 5,300 crore for the Upper Bhadra project. But it has been three years since the announcement was made in the budget. But so far, not a single rupee has been released for the same, he charged.

Reacting to State BJP President B Y Vijayendra's demand for white paper, the chief minister said "I have explained everything in detail in the assembly for hours together. What were the BJP leaders doing then? The copy of the state budget itself is white paper."

Replying to former chief minister Bommai's demand that the government must provide documents on loans, he said that all the documents related to the financial situation have been clearly stated in the budget. During the BJP's tenure, Rs 530,000 crore loans had been borrowed. The guarantee scheme reaches the beneficiaries' accounts directly, and there is no room for corruption in this, he claimed.

Responding to the comments about non-payment of the outstanding bills to the contractors, he said that "BJP-led government had not cleared the bills amounting to Rs 29,000 crore. We have cleared outstanding bills amounting to Rs 24,000 crore. A clear answer was given in the session based on the documentation in this regard", he said.

Answering the question on the state government's preparedness for the price hike due to the West Asia conflict, he said that the responsibility of controlling price hike lies with the Centre. The distribution of gas, petrol and diesel supplied by the Centre is the responsibility of the state government. He said that the "fuel prices in our state are lower than in the neighbouring states."

On internal reservation, the government is committed to implementing internal reservation in the state. Reacting to the BJP's statement that votes of backward classes, minorities will go to the BJP in the bypolls, he said that there are two economics theories-Trickle-down economic theory and Universal Basic Income. BJP is always in favour of Trickle-down economic theory which means rich people. Universal Basic Income theory is in favour of poor people. He also made it clear that guarantees are not permanent schemes. But the aim is to help in empowering people below the poverty line.

On appointment, he said all the 7.5 lakh vacant posts will be filled phase-wise. This year, 56,432 posts will be filled and it would go on next years also.

When questioned on revival of KPSC, he said it is an independent body and steps will be taken to ensure that appointments are free from irregularities.