Karnataka expects more revenue with economic recovery: CM Bommai
Bengaluru, Sep 22: Karnataka Chief Minister Basavaraj Bommai on Thursday told the Legislative Assembly that with recovery in the economy after COVID-19 pandemic, the State is expected to receive more revenue in 2022-23 than expected.
The Chief Minister, who also holds the Finance portfolio, was speaking while piloting the supplementary estimates in the Legislative Assembly.
"Post-COVID economic recovery is on, last year we performed better than expected, in the last six months, too, as the trend continued, there has been additional revenue collection and other sources," Bommai said.
He said the State had received GST compensation of Rs 8,633 crore in the last six months.
"With the Central government's revenue collection being good, the State's share from the Centre is also likely to increase, adding to that State's performance is also good. Looking at the last six month's trend, we are likely to exceed the target," he added.
Further speaking on the GST compensation, Bommai said Rs 14,015 crore is pending, out of which Rs 8,633 has already come.
The State has also claimed additional Rs 6,000 crore and it is expected soon after the audit of the accounts by the Centre.
"Out of the GST we have to get, about Rs 6,000 crore we had to get audited by the AG ( Accountant General) and send it, it is now with the CAG. I have spoken to the Union Finance Minister Nirmala Sithraman, she has said that once CAG approval is given, the money will be released immediately," he said.
The supplementary estimates of Rs 14,762.2 crore, was passed by the Assembly today.
The Chief Minister said, as promised earlier, he has set aside a sum of Rs 857 crore for the Backward Class Department.
He also assured that strict rules would be implemented and technology like satellite and drone would be used in the identification of extraction of minor minerals.
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Rupee rises 10 paise to 92.41/USD; faces risks from rising global tensions
Mumbai (PTI): The rupee appreciated 10 paise to 92.41 against the US dollar in early trade on Friday, even as the USD/INR pair faces risks from rising global tensions, especially the US-Iran conflict.
Forex traders said the rupee is likely to see high volatility intra-day as the deadline for RBI's instructions to banks to curb their overnight positions to USD 100 million closes today.
At the interbank foreign exchange market, the rupee opened at 92.58 against the US dollar, then gained ground to touch 92.41 against the US dollar in initial trade, registering a gain of 10 paise over its previous close.
On Thursday, the rupee settled with a marginal gain of 3 paise at 92.51 against the US dollar.
"An estimated 80–85 per cent of these positions have already been unwound, which means the bulk of this supportive flow is now behind us. In simple terms, the cushion that held the rupee steady is beginning to thin, and this is where the story starts to shift," CR Forex Advisors MD Amit Pabari said.
Pabari further noted that looking ahead, the picture for the rupee appears to be changing. "With most of the NOP-related support now fading and global uncertainties still elevated, the scope for further strength seems limited. USDINR is likely to find a base in the 92.20–92.50 zone, with a gradual move higher towards 93.50–94.00 levels," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was higher by 0.07 per cent at 98.69 as the safe-haven demand has come down after the ceasefire, but as the ceasefire is fragile, the US dollar is getting bids at lower levels.
Brent crude, the global oil benchmark, was trading higher by 0.51 per cent at USD 96.44 per barrel in futures trade, as the ongoing uncertainty over the Strait of Hormuz opening is keeping the oil trade well bid.
Pabari further noted that just as domestic support begins to fade, the global backdrop is turning uneasy again. "The World Bank has flagged that India's growth for FY27, expected at 6.6 per cent, faces risks from rising global tensions, especially the Iran conflict," he said.
According to Pabari, India continues to have strong buffers in the form of forex reserves and a stable banking system, but pressure points are slowly beginning to build.
On the domestic equity market front, the stock markets witnessed a rebound in early trade. The 30-share Sensex jumped 630.08 points to 77,261.73, while the Nifty climbed 203.6 points to 23,978.70.
Foreign Institutional Investors offloaded equities worth Rs 1,711.19 crore on Thursday, according to exchange data.
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