Recommend capping cesses, surcharges at 5% of gross tax revenue: CM to Finance Commission
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Thursday requested the 16th Finance Commission to recommend capping of cesses and surcharges at five per cent of gross tax revenue, and anything exceeding that should be a part of the divisible pool.
In his address to Chairman of the 16th Finance Commission Arvind Panagariya and its members at a meeting here, he also requested the panel to recommend that vertical devolution should be at least 50 per cent of the divisible pool.
All non-tax revenues of the Centre should be included in the divisible pool of taxes by bringing the necessary Constitutional amendment, Siddaramaiah said.
The Chief Minister said economically advanced States are committed to supporting poorer States, but this should not come at the expense of their own residents or economic efficiency.
The Commission needs to carefully examine the impact of extremely high emphasis given to equity on the incentives of well performing states.
"Moreover, the taxpayers of such states expect their taxes to work for them. This creates public trust. The Finance Commission therefore needs to do a tightrope walk while balancing equity with efficiency and performance", Siddaramaiah said.
Due to the disproportionate weightage given to equity by the 15th Finance Commission, Karnataka and similarly placed States ended up getting penalised for their good performance, both fiscally and demographically, the Chief Minister said.
Noting that cesses and surcharges are not part of the divisible pool, the Chief Minister said over the years, the Union Government has increased its reliance on them.
This has led to the divisible pool not growing in the same proportion as the Gross Tax Revenue, he said. This has caused substantial loss to all the States.
The loss to Karnataka on account of the non-sharing of cesses and surcharges from the divisible pool is Rs. 53,359 crore during the period 2017-18 to 2024-25, according to him.
The Chief Minister said reduction in central financial transfers is placing severe limitations on the ability of the States to invest in physical and human infrastructure, adding, this issue must be addressed urgently.
"Economically advanced States are committed to supporting poorer States, but this should not come at the expense of their own residents or economic efficiency," Siddaramaiah said. "A larger proportion of resources generated by the States should be shared with them."
He requested the Commission to take a bold view and approach, whereby equity considerations are balanced with sufficient reward for efficiency and performance.
Karnataka recommends that 60 per cent of contribution of a state to the divisible pool, for inter se allocation among states, should be given to that state, Siddaramaiah said.
Karnataka, the Chief Minister said, has been central to India's growth story, adding, it contributes approximately 8.4 per cent to the national GDP with only about five per cent of the population. The State ranks second in total GST contribution to the country.
Despite Karnataka's substantial contribution of about Rs four lakh crore to the Gross Tax Revenue of the Union every year, the state gets about Rs 45,000 crore in the form of devolution and about Rs. 15,000 crore grant-in-aid.
"This means that for every rupee Karnataka contributes, only 15 paise is returned to the state," he pointed out.
The Chief Minister said Karnataka requires greater devolution by the Centre as it faces regional imbalances, especially in the Kalyana Karnataka region, and the challenges of urbanisation.
Bengaluru, Siddaramaiah said, needs an investment of Rs. 55,586 crore over the next five years out of which the State requested for a grant of Rs 27,793 crore.
Similarly, for the equitable development of the Kalyana Karnataka region, the State is investing Rs 25,000 crore and requested a matching grant of Rs.25,000 crores over five years from the 16th Finance Commission.
To ensure effective disaster mitigation and timely relief and rehabilitation measures in the highly vulnerable region of Western Ghats, the State requested a grant of Rs.10,000 crore.
According to him, the 15th Finance Commission’s award reduced Karnataka’s share sharply from 4.713 to 3.647. This has led to a loss of Rs. 68,275 crore during the five-year period from 2021-26, he said.
The Finance Commission was conscious of the drastic cut Karnataka received and recommended state specific grants of Rs.11,495 crore, the Chief Minister said, adding, the Government of India, however, has not accepted the recommendation.
"So, Karnataka was deprived of these grants as well. The total of all the losses amount to Rs 79,770 Crores during the 15th Finance Commission period,", Siddaramaiah said.
Karnataka, he said, has seen a revenue transfer of Rs 35,000-40,000 crore per year to other States, amounting to 1.8 percent of its GSDP, during the 15th Finance Commission period.
"The figure is astounding because the net transfers outside of Karnataka amount to about 50 to 55 percent of the total revenues it generates."
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Man chased, brutally stabbed inside public toilet in northwest Delhi; one arrested; juvenile held
New Delhi (PTI): An alleged road rage incident took a fatal turn when a 27-year-old factory worker was chased down by assailants and stabbed multiple times inside a public toilet in northwest Delhi's Ashok Vihar area, police said on Thursday.
According to police, the incident took place on Wednesday night, when witnesses saw the victim, Santosh Kumar, running into a public toilet in a desperate bid to save his life, with his attackers hot on his heels.
"A PCR call was received at 6:23 pm on April 8 regarding a man being stabbed inside the compound of a Sulabh Sauchalaya located at the fish market in Wazirpur Industrial Area," a senior police officer said.
A police team rushed to the spot and found the victim lying in a pool of blood inside the toilet premises. The victim, originally from Nepal, was residing in Macchi Market area, the official said.
Preliminary inquiry revealed that the incident stemmed from an altercation between the victim and a motorcycle rider. The verbal spat soon escalated into a physical scuffle, during which the accused, along with an associate, allegedly attacked Santosh with a knife.
Police sources said in a desperate attempt to save himself, the injured victim ran towards the nearby public toilet and tried to latch the door from inside. Eyewitness accounts suggest he tried to take refuge inside the public toilet and shut the door to prevent his attackers from entering. However, he was chased down, overpowered, and stabbed multiple times.
Santosh collapsed on the spot, where he later succumbed to his injuries, police said.
A case under sections 103(1) (murder) and 3(5) (common intentions) was registered at Ashok Vihar police station and an investigation was taken up.
During the probe, police arrested one accused identified as Tanish (19), a resident of CSA Colony in Macchi Market area, and apprehended a juvenile allegedly involved in the incident.
Police said the motorcycle used by the accused, which they had abandoned while fleeing after the attack, was recovered near the crime scene.
Family members and acquaintances of the deceased expressed shock over the killing. Santosh's uncle, who reached the spot after being informed, recounted the scene.
"When I came here, I saw him lying on the floor, dead. I noticed that he had been stabbed twice. I am not aware of what exactly happened. He was just 27 years old and used to work in a steel company with me. I don't know how many people were involved in the attack. We are from Nepal, and I have been working here for 15 years. I think he was stabbed outside and later came inside the toilet to save himself. There was a bike outside which I think belonged to the attackers," he said.
Police said the motive behind the crime appears to be road rage -- a sudden and heated altercation on the road that spiralled into a violent assault resulting in the victim's death.
Efforts are underway to identify and apprehend any other persons involved in the attack. Police teams are analysing CCTV footage from the surrounding area and examining local witnesses to piece together the sequence of events.
