Extend GST compensation period else Karnataka will become revenue deficit state: G C Chandrashekhar
New Delhi, Feb 12: Karnataka - which is expected to have a debt of over Rs 4 lakh crore at the end of this fiscal year - will become a revenue deficit state if the Centre does not extend the GST compensation period, Congress MP G C Chandrashekar said on Friday in the Rajya Sabha.
Participating in a debate on Budget 2021, Chandrashekar pointed out that the GST compensation provided to Karnataka since 2018-19 was very low despite the state being the third highest tax generator in the country.
At the time of implementation of the Goods and Services Tax (GST) on July 1, 2017, the Centre had promised to compensate states for loss of revenue for five years at an agreed formula.
Chandrashekar said Karnataka is in a bad financial situation as its debt is rising every year and is expected to cross Rs 4 lakh crore this fiscal year from Rs 3.27 lakh crore in 2019-20.
The state's transportation department is struggling to pay salaries of its staff and could pay half salary in December 2020 and is yet to decide for January, he said, adding that in the current situation it can only afford fuel for buses.
Even the Bengaluru Metropolitan Transport Corporation (BMTC) is considering borrowing Rs 250 crore, while the transportation department has already mortgaged BMTC head office and is mulling mortgaging more assets, he added.
"If this situation continues and the GST compensation period is not extended, then Karnataka will move from revenue surplus state to revenue deficit state. Then money will have to be borrowed to pay salaries and administrative costs leaving development activities," Chandrashekar noted.
Expressing concern over low GST compensation given to Karnataka, the Congress leader said the state had contributed Rs 79,000 crore GST revenue in 2018-19 but in return got only Rs 10,754 crore as compensation. Similarly in 2019-20, the state contributed Rs 84,000 crore GST revenue and received Rs 16,628 crore compensation.
For 2020-21, the revised estimate shows GST compensation to Karnataka at Rs 7,900 crore, less than Rs 28,000 crore budgeted as GST divulsion, he said.
Further, he said the government has not given the special grant of Rs 5,495 crore for 2020-21 despite being recommended by the 15th Finance Commission to offset the losses.
While noting that the Centre has failed to fulfill the promises it made, the Congress leader said suburban rail project to ease Bengaluru traffic was announced in 2018 but work has not yet commenced. The promise of conducting banking exams in regional languages has also not been kept.
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SC to hear on May 4 PIL seeking stringent guidelines for issuing Aadhaar to adolescents, adults
New Delhi (PTI): The Supreme Court is scheduled to hear on Monday a plea seeking a direction to the Unique Identification Authority of India to issue new Aadhaar cards only to citizens up to the age of six years, and frame stringent guidelines for its issuance to adolescents and adults to stop infiltrators from masquerading as Indian citizens.
As per the apex court's causelist of May 4, the plea would come up for hearing before a bench of Chief Justice Surya Kant and Justice Joymalya Bagchi.
The Public Interest Litigation (PIL) filed by lawyer Ashwini Upadhyay has also sought a direction to the authorities to install display boards at common service centres stating that the 12-digit unique identification number is only a "proof of identity" and not a proof of citizenship, address or date of birth.
Besides all the states and Union Territories, the plea has made the UIDAI -- which is the authority that issues Aadhaar -- and the Union ministries of home, law and justice, and electronics and information technology as parties.
The plea, filed through advocate Ashwani Dubey, said Aadhaar, originally intended as a proof of identity, has increasingly become a "foundational document" enabling individuals to obtain other identification documents, such as ration cards, domicile certificates and voter identity cards.
"The UIDAI has issued 144 crore Aadhaar and 99 percent Indians have been enrolled. Therefore, the petitioner is filing this writ petition as a PIL under Article 32, seeking a direction to UIDAI to issue new Aadhaar to children only and frame new stringent guidelines for adolescents and adults, so as to stop infiltrators from getting it and masquerading as Indian citizens," the plea said.
It said the need to file the plea arose when the petitioner came to know the manner in which infiltrators are able to procure Aadhaar through a verification process that is weak and can be easily manipulated.
"Foreigners apply for Aadhaar under the 'foreign' category. But infiltrators apply for Aadhaar under the 'Indian citizen' category and get it easily made. Thereafter, they obtain a ration card, birth and domicile certificate, driving licence, et cetera, essentially becoming indistinguishable from Indian citizens…," it said.
Besides seeking other directions, the plea has raised legal questions, including whether the Aadhaar Act 2016 has become "temporally unreasonable" for failing to keep up with the legislative intent of distinguishing foreigners from Indian citizens.
It said the alleged misuse of Aadhaar undermines targeted welfare delivery and leads to diversion of public resources.
