CM Kumaraswamy meets Jaitley, seeks extension of GST compensation period
New Delhi, Dec 27 : Karnataka Chief Minister H D Kumaraswamy met Union Finance Minister Arun Jaitley here on Thursday and sought extension of the GST compensation period till 2025, contending that the state's revenue deficit has
widened to 20 per cent post-GST regime.
At present, the states are entitled to get compensation for the first five years since the implementation of Goods and Services Tax (GST) in 2017, that is till 2022.
At the meeting held in the Parliament complex, Kumaraswamy informed Jaitley that the revenue deficit of the state against protected revenue may continue even after 2022 which is expected to affect fund allocation for various welfare schemes and infrastructure projects, an official statement said.
Although there is an improvement in the Goods and Services Tax (GST) collections in the state in the current fiscal, compared to financial year 2017-18, the gap with protected revenue is "substantial" and may well continue beyond 2022.
"During the VAT regime, Karnataka used to register 10-12 per cent of average growth every year. But post-GST, the revenue deficit is found to be 20 per cent against protected revenue," the chief minister said in a representation made to the Union finance minister.
All efforts are being made to minimise the revenue leak, but Karnataka has found certain fundamental structural reasons for this deficit such as current tax rates and less than expected contribution of services sector among others, Kumaraswamy said.
According to official data, in 2017-18, the Centre had released Rs 41,147 crore to the states as GST compensation to ensure that their revenue is protected at the level of 14 per cent over the base year tax collection in 2015-16, as per the official data.
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MP cruise boat tragedy: Death toll rises to nine; search ops continue at Bargi Dam
Jabalpur (PTI): The death toll in the Bargi Dam tragedy rose to nine on Friday, as rescuers recovered the bodies of five more persons who were on the cruise boat that overturned in the reservoir in Madhya Pradesh's Jabalpur.
Talking to PTI Videos, Madhya Pradesh Tourism Minister Dharmendra Bhav Singh Lodhi said, "Four bodies were recovered on Thursday, while five were found in the early hours during the rescue operation, taking the toll to nine."
As many as 22 people have been rescued so far, he said.
The minister said that a thorough probe will be conducted, and the issue of life jackets, raised by one of the survivors, will also be investigated.
The rescue operation is underway in full swing to trace the missing persons, Lodhi said.
A cruise boat with 29 passengers and two crew members onboard overturned in the Bargi Dam after encountering a sudden storm on Thursday evening, officials said.
The Bargi Dam is constructed on the Narmada River in Jabalpur district.
A search and rescue operation for the missing passengers continued overnight with teams from the Army, NDRF and SDRF joining in, State PWD Minister Rakesh Singh said.
Hydraulic cranes are being used to pull out the cruise boat from the water body, he said.
According to eyewitnesses, strong winds made the water choppy, prompting many on board to raise an alarm and ask the crew to steer the boat back to the banks.
However, the crew was unable to hear these shouts, and the boat drifted and then overturned, they said, adding that some locals rescued a few passengers wearing life jackets with the help of a rope.
