Fiscal 2020-21 saw Karnataka take a big hit on its financial resources.
In accordance with the 2020-21 financial statements, account reports published by Comtrroller and General Auditor (CAG), the government recorded a decline in Rs 14,535 Crore in collecting tax income.
Total state debt rose from RS 3.19 Lakh Crore to Rs 3.97 lakh crore, thereby increasing debt amounting to Rs 78,000 Crore.
The biggest losses occur in SGST, Customs Country, sales tax, stamps and registration and vehicle taxes.
However, non-tax revenues increased slightly from RS 7,681 Crore to Rs 7,894 Crore.
The resulting impact has been faced by the government by increasing loans and components of their interests.
Effectively, the resulting impact has pushed the interest component to Rs 22,666 Crore or 14.46 percent of the revenue revenue of the state placed at Rs 1.56 lakh crore.
CAG also recorded that 13 projects under the irrigation department, 41 under the road, two under the building, three under the bridge and one incomplete job under other categories remained “incomplete” for more than five years.
There are also several anomalies in the recording of “savings” by the government and excessive payments from Rs 68.65 Crore to the center, although the Ministry of Finance has removed advanced loans to all state governments in 2010.
Income losses hurt Karnataka, debt up by Rs 78,000 Crore: CAG
