Guarantee schemes led to higher GST collection: Karnataka CM Siddaramaiah

Chief minister Siddaramaiah on Wednesday said the increased spending power among people fuelled by welfare guarantee schemes led to higher GST collection in Karnataka. The GST collection trends signal broader economic gains for the state, he said in a speech that was read out at the Fiscal Policy Institute in his absence.

The CM said contrary to the claims of sceptics, these schemes have neither burdened the exchequer nor fuelled inflation, adding that in fact by increasing consumption at the bottom of the pyramid, they have stimulated local demand, enhanced revenue buoyancy and reduced rural unemployment. Karnataka's GST collection in October increased 10% year-on-year to ₹14,395 crore, with the state retaining the second place after Maharashtra.