Karnataka registered a Gross State Home Product (GSDP) development charge of 10.2 per cent within the 2023-24 fiscal, based on the Ministry of Statistics and Programme Implementation. This was greater than the nationwide GDP development charge of 8.2 per cent. The info, compiled by the ministry in August, was launched by Chief Minister Siddaramaiah’s workplace on Monday amid the Opposition BJP’s allegation that financial development has stagnated underneath Congress rule.
“The state achieved this feat regardless of extreme challenges, together with the worst drought in a decade and a slowdown in world IT markets,” the assertion learn. Initially, the Nationwide Statistical Estimate had projected a modest 4 per cent GSDP development for Karnataka. This was revised to 13.1 per cent by the tip of the fiscal, indicating that the state’s financial efficiency was underestimated initially by the company, based on the chief minister’s workplace.
The ten.2 per cent GSDP development got here in a yr when the state’s agriculture sector confronted unfavorable development owing to drought and the IT and {hardware} sectors had been susceptible to world financial downturns attributable to a number of components such because the Russia-Ukraine conflict and others. The Indian IT business’s development slowed from 15.5 per cent within the 2022-23 fiscal to eight per cent within the 2023-24 fiscal, which “mirrored world recessionary fears and inflation”, the assertion stated, including, “Nevertheless, Karnataka’s financial system remained resilient, because of strategic governance and diversified development drivers.”
For the 2024-25 fiscal, the Nationwide Statistical Estimate has estimated Karnataka’s GSDP development charge at 9.4 per cent, barely decrease than the nationwide projected common of 10.5 per cent. “Nevertheless, the ministry of finance tasks a extra optimistic 14 per cent development for the state, supported by sturdy fiscal indicators,” based on the chief minister’s workplace. It famous that the year-on-year improve in GST collections was 10 per cent, whereas stamp obligation income had surged 24 per cent “signalling a wholesome financial trajectory”.
One of many causes for the surge in stamp obligation income was the upward revision in costs effected by the Authorities.
The state authorities has accused the Centre of denying its rightful share in taxes devolved. Siddaramaiah not too long ago wrote to different southern states about holding a convention to debate the share of taxes earlier than the sixteenth Finance Fee submits its report.
