Bengaluru, March 5 (IANS): Revenue resources of Karnataka slumped owing to Rs 11,887 crore reduction in central funds to the southern state for the fiscal 2019-20, Chief Minister B.S. Yediyurappa said on Thursday.

"As the state's share in central taxes declined during the current fiscal (2019-20), there is a reduction of Rs 8,887 crore to Karnataka from the Centre. Due to slump in collection from the Goods and Services Tax (GST) regime, the compensation to the state will be Rs 3,000 less for this fiscal," said Yediyurappa while presenting the Budget for the ensuing fiscal (2020-21) in the Assembly here.

Admitting that the fiscal under review (2019-20) has been a difficult year to reach the Budget targets, the Chief Minister said the seven-month-old BJP government had to slash the expenditure of many state departments.

"As per the 15th Finance Commission interim report, the reduction in the state's share of central taxes will be Rs 11,215 crore for the new fiscal (2020-21). Though the 14th Finance Commission had fixed the state's share out of total central collection at 4.7 per cent, the 15th panel has reduced it to 3.64 per cent," pointed out Yediyurappa, who also holds the finance portfolio.

As against the 7.8 per cent gross state domestic product (GSDP) for fiscal 2018-19, its estimate for fiscal 2019-20 is expected to decline 1 per cent to 6.8 per growth rate by this month-end.