BELAGAVI: The mid-year review of Karnataka’s finances for 2022- 23 highlighted that the state has demonstrated strong economic recovery from the pandemic-induced slowdown by registering a 9.5 per cent growth.
The report, tabled in the Assembly on Monday, pointed to the provisional estimates of National Statistical Office data and mentioned that the state’s revenue collections have increased by 10 per cent and GST collections shot up by 30 per cent in the first half of 2022-23 compared to the previous year.
The state has also managed to reduce inflation from 6.39 per cent in April 2022 to 5.81 per cent in September 2022, below the 7.4 per cent national inflation during the period.
Karnataka is among the top states that attracted Foreign Direct Investments (FDI), receiving Rs 21,480 crore in the first quarter of the present financial year, according to the report.
However, the global economic slowdown is likely to have an adverse impact on the Gross State Domestic Product (GSDP), which is dominated by export-oriented service sector.
“The fiscal deficit for 2022-23 has been revised at 2.82 per cent of GSDP and revenue deficit at 0.67 per cent of GSDP for the state with a total budget size of Rs 2,65,720 crore. The fiscal deficit of 2.82 per cent of GSDP is well within the permissible limit of 3 per cent,” the report stated.
The total revenue of the state in the first six months of the financial year 2022-23 is Rs 1,00,330 crore. Of this, the state’s own tax revenue is Rs 75,368 crore, including GST compensation of Rs 8,633 crore. The devolution from the Union government and the grant-in-aid stood at Rs 13,717 crore and Rs 5,521 crore, respectively.
The state’s own tax revenue collection and non-tax revenue collections for the first half of 2022-23 has increased compared to the same period during the last fiscal. “This shows the economy is on the recovery path. For the first half of 2022-23, the revenue collection is at an estimated 57 per cent as against 54 per cent in 2021-22. The overall revenue has increased by 10 per cent compared to the previous year," it said.
At the same time, the Total Outstanding Liabilities (TOL) of the state is expected to increase from Rs 4,57,899 crore in 2021-22 to Rs 5,18,366 crore in 2022-23.