Karnataka drought causes ₹46,000 crore in losses; state seeks up to ₹11,000 crore aid
GS3Economy · S&T · Environment · Security· Cropping patterns & irrigation· Prelims + Mains·
Impact of climate-induced agricultural distress on state fiscal health: a GS3 and Federalism case study.
Why in news
Karnataka's Revenue Minister G. Parameshwara reported a ₹46,000 crore loss due to severe drought and requested up to ₹11,000 crore in state aid.
Background
The drought in Karnataka resulted in an estimated loss of ₹46,000 crore, which may impact GST collections. The state government is seeking financial aid between ₹10,000 crore and ₹11,000 crore while reviewing Sections 79A and 79B of the Land Reforms Act.
Facts for Prelims
- FactKarnataka reported ₹46,000 crore in losses due to severe drought.
- FactThe state requested ₹10,000 crore to ₹11,000 crore in aid.
- PostG. Parameshwara is the Deputy Chief Minister and Revenue Minister of Karnataka.
- PostKrishna Byre Gowda represents Karnataka at GST Council meetings.
- Act / BillSections 79A and 79B of the Land Reforms Act are under review.
Prelims practice question
Which sections of the Land Reforms Act are currently under review by the Karnataka government?
- (a)Sections 79A and 79B
- (b)Sections 50A and 50B
- (c)Sections 10A and 10B
- (d)Sections 100A and 100B
Show answer
Answer: (a) Sections 79A and 79B — The state is reviewing Sections 79A and 79B of the Land Reforms Act in response to the drought.
For Mains
Q. Discuss the fiscal and agricultural implications of recurring droughts on state economies and the role of federal fiscal transfers in mitigating such losses.
Dimensions to cover in your answer
- Fiscal volatility: Impact of agricultural distress on state GST revenue and fiscal deficit
- Institutional review: Evaluating Land Reforms Act provisions to address drought-induced land use issues
Keywords: Fiscal Federalism · Agricultural Distress · GST Revenue · Drought Mitigation · Land Reform
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