Bengaluru: Chief Minister, H. D. Kumaraswamy on Saturday took strong objection to Niti Aayog ranking Bengaluru 58 in the Ease of Living Index when Karnataka was at the forefront of the Global Digital Revolution and the city was hailed as the technology capital of India.
“This is unacceptable as Bengaluru is widely rated as the most preferred city for work in the country by reputed agencies.
The ranking system adopted by Niti Aayog should be more participative, scientific and transparent,” he argued, addressing a meeting of the governing council of Niti Aayog in Delhi.
He also strongly appealed to the Union government to extend Goods and Services Tax (GST) compensation beyond five years as Karnataka could face a severe financial crunch if the recompense period ended in 2022.
Recalling that the Union government had promised to compensate states for their loss of revenue for five years till 2022 while introducing GST, he said, “While the revenue gap is being bridged by the assured compensation till 2022, the state has limited scope to mobilise additional revenue thereafter. It is evident that at the end of 2022-23 there will be a steep fall in revenue of the state as compared to the protected revenue of 2021-22, which would have accrued to it due to the Constitutionally guaranteed compensation."
Arguing that this would adversely impact developmental and other infrastructure projects of the state as well as committed expenditure of the government, he said if the revenue gap was not bridged in years to come, “adequate compensation, in the manner envisaged in the Compensation Act, should be extended beyond 2022.”