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Karnataka will claim GST compensation from Centre as it sees revenue shortfall of 7.75 per cent.
In its midyear review of State finances for 2017-18, the State government said its revenue fell short after GST implementation from July 1 this year. After GST implementation, ₹5,710 crore has been collected against ₹6,190 crore during the same period in 2016-17.
To meet the shortfall, the State government is planning to invoke the Compensation Act. As per the Act, the revenue to be compensated for the period with a 14 per cent per annum growth over the fiscal 2015-16 collections, which should be ₹6,640 crore.
Commercial taxesCommercial taxes witnessed a growth of 8 per cent over the collections during the first half of 2017-18, which is less that 13.3 per cent growth achieved during the corresponding period of previous year (2016-17).
So far 48 per cent of the budget estimate has been collected during the first-half of fiscal 2016-17, the collection as percentage of budget estimated during the first half of current fiscal is higher at 49 per cent.
Excise collectionsThe State excise collections have fared well. As against the budget estimate of ₹18,050 crore, collections in the fist six months of 2017-18 is 47 per cent i.e. ₹8,539 crore with a growth rate of 6 per cent over corresponding period of 2016-17.
In the first half of 2017-18, motor vehicle tax grew at 11.1 per cent over that of the same period during 2016-17.
With 48 per cent collection against the budget estimate of ₹6,006 crore mid-year, it is expected that the budget estimates to be met.
Stamps and RegistrationThe receipts under stamps and registration are at 46 per cent to budget estimate and are growing at 3 per cent over that of the corresponding period in 2016-17.
With sustained efforts, it is expected that the budgetary targets would be achieved.
On the State’s own non-tax revenue, majorly consisting of receipts from mining, interest receipts and others, the realisation at the end of September 2017 was ₹2,601 crore, which is around 37.46 per cent of the budget estimates of ₹ 6,945 crore for the year.
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