After fuel price hike, Karnataka Deputy CM indicates possible increase in monthly water charges in Bengaluru

According to an official gazette notification released by the finance department, the Karnataka Sales Tax (KST) has increased from 25.92 percent to 29.84 percent on petrol and from 14.3 percent to 18.4 percent on diesel.

The move came on the heels of the recently concluded Lok Sabha polls, where inflation and price rise have been a critical issue.

With the hike, the petrol prices are expected to rise to ₹103.84 per litre, and the diesel price to ₹88.93 per litre.

Reacting to the price hike on Saturday, 15 June, BJP leader BY Vijayendra had said, “The financial situation in Karnataka is getting worse every day. They (Congress) are unable to run the government because of the guarantees they promised and the lack of necessary resources.”

Also Read: Karnataka fuel price hike: Rates still lower than neighbouring, Maharashtra, shows data

‘No option’

‘Since last ten years, the water tariff in Bengaluru has not been increased. It (BWSSB) is suffering a great loss. We have to take up new projects. No bank is coming forward to finance the BWSSB. Now the (Cauvery) fifth phase (water supply project) is going to be completed,” Shivakumar told reporters in Bengaluru.

“70 percent is power bill and labour cost…every year we (BWSSB) are having a big loss. So there is no option. I am working out the possibilities, we are discussing how to set the company right,” the Minister said.

Even development agencies like the Japan International Cooperation Agency (JICA) and the World Bank have contended that the water tariff hike issue is being politicised, and no attempt is made to ensure that BWSSB achieves break-even, Shivakumar said. “We want to expand things, we have given six tmc (thousand million cubic feet) more water (from Cauvery) for Bengaluru, we will have to take up one more phase to draw that water.”

“There is no option. We want to show that it is an independent company financially and it works independently …..I have asked officials to examine the possibilities (of hike). Let us see, ultimately we will put all facts before the public domain and then we will take a call,” he added.

#Karnataka Deputy CM @DKShivakumar on the possibility of increasing water tariff says, “Will place all the facts before the public domain and then who take a call.”

He further added that water tariffs have not been increased for the last 10 years and that the BWSSB is suffering… pic.twitter.com/sXSSHE05tk

— South First (@TheSouthfirst) June 19, 2024

Limited resources at state government’s disposal

Defending the state government’s decision to hike the fuel price, Siddaramaiah on 17 June stated that the state had limited revenue resources since the GST was implemented.

Siddaramaiah was responding to the protests by the Opposition BJP in the state, “After the Central government implemented the GST, the state government lost the power to increase its revenue. The Centre collects GST, Income Tax, Corporate Tax and Excise duty.”

He added: “The state can only increase its revenue by hiking sales tax, stamp duty, motor vehicle tax and liquor price. Where are the other sources?”

Fuel price hike in Karnataka: CM Siddaramaiah defends decision; BJP to protest state-wide on 17 June

(With PTI inputs)