Bengaluru: Karnataka chief minister HD Kumaraswamy met Union finance minister Arun Jaitley in New Delhi and requested the Centre to extend the GST compensation period till 2025. Kumaraswamy said the revenue deficit against protected revenue continuing even after 2022 may affect allocation of funds for various welfare schemes and infrastructure projects.

Kumaraswamy mentioned to Jaitley that when VAT was applied, state registered 10%  to 12% average growth every year. But post- GST, the revenue deficit has increased to 20% against the protected revenue.

Factors including current tax rates and service sectors not contributing as expected are some of the reasons for resulting in deficit revenue, he added.

Though there is improvement in GST collection in Karnataka in 2018-19 when compared to last year, the gap with protected revenue is considerably high and may also continue beyond 2022, Kumaraswamy continued.

Kumaraswamy told Jaitley that like other states, Karnataka has many social sectors and infrastructural commitments and requested him to extend the period of compensation to 2025 in the interest of development of the state.

Meeting with Union minister Piyush Goyal

Kumaraswamy also met Union minister of coal and railway, Piyush Goyal and discussed various issues regarding both the ministries.

Kumaraswamy requested him to allot coal blocks for RTPS, Ballari thermal power plant and Yermarus plant. CM also requested the Union minister to direct CIL and WCL to supply coal immediately to RTPS, which has low stock.

The chief minister also requested Goyal to approve the construction of new railway line from Bidar to Nanded in Karnataka. Bidar is one of the most backward districts in Hyderabad-Karnataka region and it also a holy place for the Sikhs and is included under the Nanded pilgrimage circuit, Kumaraswamy added. A survey on 154-km railway line is complete and has been submitted to the railway board.