BELAGAVI: The financial resources of Karnataka took a big hit in fiscal 2020-21 as the Covid pandemic and resultant lockdowns affected businesses across sectors.
The total debt shot up from Rs 3.19 lakh crore to Rs 3.97 lakh crore, an increase of Rs 78,000 crore, stated the latest Comptroller & Auditor General (CAG) report tabled in the Assembly on Tuesday.
The 2020-21 finance and appropriation accounts report by the CAG stated that the tax revenue collection in Karnataka dipped by Rs 14,535 crore. The biggest losses were incurred in SGST, excise duty, sales tax, stamps and registration and vehicle taxes. However, the non-tax revenue increased marginally from 7,681 crore to 7,894 crore.
As the revenues dipped, the state’s borrowings too went up. The interest component increased to Rs 22,666 crore, which was 14.46 per cent of the state’s revenue receipts of Rs.1.56 lakh crore.
The CAG noted that 13 projects under the irrigation department, 41 under road development, two under buildings, three underbridges and one in “others” category remained incomplete for over five years.