Karnataka CM D K Shivakumar Seeks Chartered Accountants’ Advice to Boost State Revenue, Plug Leakages
Bengaluru, August 21: Karnataka Chief Minister D K Shivakumar on Friday called on chartered accountants to advise the state government on increasing revenue mobilisation, plugging resource leakages and correcting shortcomings in its financial systems without affecting trade and industry.
Addressing the ‘Samvada Sammelana’ organised by the Institute of Chartered Accountants of India (ICAI) at Palace Grounds in Bengaluru, Shivakumar said the government was open to new ideas and solutions and sought professional guidance on strengthening its finances.
Describing chartered accountants as custodians of trust, Shivakumar said the government relied on their professional expertise and urged them to help identify mistakes, prevent leakages and guide revenue generation.
The Chief Minister also raised concerns over what he described as harassment of honest taxpayers by officials. He claimed that 12 lakh entrepreneurs had left the country and referred to concerns involving the Income Tax Department, Enforcement Directorate and CBI. He also claimed that Karnataka had a higher proportion of transactions through accounted channels compared with some other states.
Shivakumar said Karnataka was growing as an economic power and credited professional financial guidance as an important part of that progress. He said South India was a major contributor to the country’s growth and reiterated Karnataka’s demand for what he described as a fair share of resources in proportion to its contribution.
He said Karnataka was the country’s second-highest tax-paying state and accounted for 42 per cent of India’s software exports. He also pointed to the presence of major global companies and Karnataka’s position in sectors including IT-BT, technology and aerospace.
Referring to state expenditure, Shivakumar said the government spends ₹52,000 crore annually on guarantee schemes and ₹20,000 crore on free electricity for farmers’ pump sets, besides expenditure on various pensions. He asked chartered accountants to suggest ways of increasing government revenue without creating difficulties for businesses and industry.
The Chief Minister said ICAI representatives had raised the need for land for the institution and asked them to meet him after the legislative session, assuring them that he would examine the request.
Shivakumar also urged chartered accountants to guide businesses on effective utilisation of corporate social responsibility funds. He said the state wanted greater CSR focus on primary education in rural areas and was working on an education policy in this regard.
He said professionals should also guide entrepreneurs and workers coming to Karnataka from other states to improve earnings while ensuring appropriate tax compliance.
Speaking about Bengaluru’s growth, Shivakumar said the city’s population had increased from about 70 lakh 25 years ago to around 1.40 crore and that it now had 1.35 crore vehicles. Referring to his proposed tunnel-road project to address congestion, he criticised opposition to the project and argued that conventional road widening was difficult because it would require demolition of buildings.
Shivakumar also criticised the political Opposition, saying it was not allowing the government adequate opportunity for debate during the ongoing legislative session. He said his government was prepared to discuss its policies and decisions.
The Chief Minister referred to laws including the Prevention of Money Laundering Act and measures against black money while speaking about difficulties faced by citizens. He praised chartered accountants for their professional and ethical responsibilities and sought continued cooperation between the profession and the state government.
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