Karnataka asks Centre to extend GST compensation period
Bengaluru, Mar 4: Chief Minister of Karnataka Basavaraj Bommai on Friday said the estimated revenue deficit of Rs 14,699 crore in 2022-23 can be minimised if the Centre agrees to the request of the State to extend the GST (goods and services tax) compensation for the next three years in view of losses incurred due to the impact of COVID-19.
After presenting the Rs 2,65,720-crore budget of the State for 2022-23, he told reporters that it was revenue surplus but due to COVID-19 it has become revenue-deficit. In view of the increased expenditure commitments with the available resources, a revenue deficit of Rs 14,699 crore is estimated in 2022-23 compared to Rs 15,134 crore in 2021-22, said the Chief Minister.
He said the government did not take the GST component into account this year.
Bommai said the State used to get a GST compensation of Rs 11,000 crore to 14,000 crore, which would stop from this year. The State would get a compensation of Rs 4,000 crore to Rs 5,000 crore till June but due to the constitutional amendment, payment of compensation, which was only for five years since 2017, would be stopped, he said.
"We have appealed to the Centre to continue it further for at least three years keeping into account the COVID-19 year. The Centre has time till June. If Centre agrees, we can minimise our revenue deficit," said the Chief Minister.
According to Bommai, the union government had permitted borrowing up to four per cent of GSDP for 2021-22. The State had budgeted a borrowing of Rs.67,100 crore in 2021-22.
However, the revenue increased and was expected to reach the budgetary targets."So, we have reduced the borrowing to Rs.63,100 crore for 2021-22 in the revised estimates," he said.
"We have budgeted total borrowings of Rs.72,000 crore for 2022-23," he said.
Bommai was confident of the State achieving the targeted excise revenue, GST revenue, non-tax revenue and stamp duty revenue for the current fiscal. However, meeting the estimated revenue from motor vehicles would not be possible as the vehicle production has come down, he added.
Speaking about infrastructure, he said the State would build infrastructure for waterways. "Besides ports, railways, airports and roads, we are for the first time focusing on waterways," he said.
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What is Iran’s 10-point plan? Key demands ahead of US talks in Islamabad
Tehran/Islamabad: Iran has outlined a 10-point plan as the basis for upcoming talks with the United States, expected to begin in Islamabad on April 11, according to a statement from the Iranian Supreme National Security Council.
The plan lays out Tehran’s key political, military and economic demands, and is being seen as a framework for negotiations following the recent escalation in the region.
Strait of Hormuz at the centre
A major focus of the plan is the Strait of Hormuz, a critical global shipping route. Iran has proposed “controlled passage through the Strait of Hormuz in coordination with the Iranian armed forces,” which it says would give the country a unique economic and geopolitical position.
The plan also calls for the “establishment of a safe transit protocol” in the Strait that would guarantee Iran’s dominance under an agreed mechanism.
Call to end conflict
Iran has demanded “the necessity of ending the war against all elements of the axis of resistance,” signalling its expectation that hostilities should stop not only in Iran but also involving allied groups in the region.
US troop withdrawal
Another key demand is the “withdrawal of US combat forces from all bases and deployment points in the region,” indicating Tehran’s long-standing position against American military presence in West Asia.
Sanctions relief and compensation
The plan places strong emphasis on economic measures. It calls for “full payment of Iran’s damages according to estimates,” along with “the lifting of all primary and secondary sanctions and resolutions of the Board of Governors and the Security Council.”
It also seeks “the release of all Iranian assets and properties frozen abroad,” which have been a major point of contention for years.
Binding global guarantee
Finally, Iran has demanded that all these terms be formally recognised through “a binding Security Council resolution,” suggesting it wants international legal backing to ensure enforcement.
What this means
The 10-point plan reflects Iran’s broader push for security guarantees, economic relief and regional influence. The upcoming talks in Islamabad are expected to test how far both sides are willing to negotiate on these demands.
