BENGALURU: Former minister and senior Congress leader Krishna Byregowda on Thursday expressed concern that Karnataka’s financial situation would be in the doldrums as the term of Goods and Services Tax (GST) compensation from the Centre will end in June 2022, and no decision has yet been made to extend it, despite an appeal by state governments.
“Even Chief Minister Basavaraj Bommai had estimated GST compensation as Rs 5,000 crore in his budget. The state is actually losing over Rs 20,000 crore in GST and Rs 24,000 crore additionally through grant-in-aid and tax benefit from the Centre,” he said, during a debate on the budget in the assembly.
Byregowda alleged that the Centre is deliberately not following the advice of the 15th Finance Commission that 41 per cent of revenue generated must be distributed among states, and has retained it at 29 per cent.