Many economists and financial experts say drought will have a direct impact on GST collection

Many economists and financial experts say drought will have a direct impact on GST collection

District minister Vijayanand Kashappanavar explains the drought situation to the central team in Bagalkot

The teams were initially sent to inspect 101 taluks declared drought-hit in the first round, but the state requested them to also cover taluks that were subsequently declared drought-hit. The state has pegged drought-related losses at about Rs 46,000 crore and is seeking Rs 10,000 crore to Rs 12,000 crore from Centre under NDRF norms.

Bengaluru: Severe drought is likely to affect the state’s goods and services tax (GST) collection, with preliminary reports indicating a dip in revenue, deputy chief minister G Parameshwara, who also holds the revenue portfolio, said Monday. Many economists and financial experts say drought will have a direct impact on GST collection,” Parameshwara said, adding the govt was examining ways to improve GST collections. On drought relief, Parameshwara said three central teams were assessing the situation across drought-hit districts. “Considering that the central teams accepted our request, almost all districts which are drought-hit are being covered by the three central teams,” he said. Parameshwara said a delegation led by chief minister DK Shivakumar is likely to travel to New Delhi to seek higher relief. However, the increase is minimal and insignificant,” he said.

“It must be understood that the state is facing severe drought and drought does not restrict itself to only the farming community. “It is obvious the state govt will have to increase revenue from its own resources when the Centre cuts down grants and funds. Speaking ahead of a GST Council meeting in New Delhi on Wednesday, Parameshwara said the impact of drought extends beyond agriculture and could affect several sectors of the economy.

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