BENGALURU: The state’s finances are not looking very pretty for the fiscal year 2019-20. A combination of factors is set to deliver a blow to the state’s revenue receipts: floods, decrease in the devolution of funds from the Centre, and a drop in the collection of motor vehicles taxes.
Karnataka may see a shortfall of Rs 1,672 crore under the devolution of funds from the Centre. A mid-year review shows that while all other taxes have grown in comparison to the same period last fiscal, motor vehicles tax has seen a big dip.