News Brief
FY24 Financials: Karnataka's Borrowing Up, Operating Expenses Trimmed - Here's All About It
Siddharamaiah, Karnataka’s Chief Minister
After the Congress government came into power, Karnataka has encountered significant hurdles in revenue collection during the fiscal year 2023-24, as its own-tax revenue fell short by a staggering Rs 12,192 crore.
The state's ambitious revenue targets proved unattainable, resulting in a shortfall across major revenue sources, including commercial taxes, excise, stamps & registration, and motor vehicle taxes, reported Deccan Herald.
Also, despite intending to borrow Rs 85,818 crore, the state was compelled to exceed this figure by an additional Rs 4,400 crore.
In 2024-25, the CM wants to borrow Rs 1.05 lakh crore.
This surge in borrowing underscores Karnataka's heavy reliance on external funds, exacerbated by the cessation of GST compensation.
According to reports, Karnataka is “relying heavily” on borrowings as GST compensation has stopped.
“Earlier, the state got a generous GST compensation of Rs 20,000 crore,” the report said.
Meanwhile, the state cut revenue expenditure (salaries, pensions etc) by over Rs 11,000 crore from the estimated Rs 2.50 lakh crore to Rs 2.39 lakh crore in actuals.
“There were tight financial controls, mostly on some administrative expenses, purchases and procurements, which led to reduction in revenue expenditure,” a senior official told Deccan Herald.
It's noteworthy that Karnataka’s guarantee schemes cost Rs 36,000 crore in 2023-24.
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