Bengaluru: Severe drought is likely to affect the state’s goods and services tax (GST) collection, with preliminary reports indicating a dip in revenue, deputy chief minister G Parameshwara, who also holds the revenue portfolio, said Monday.Speaking ahead of a GST Council meeting in New Delhi on Wednesday, Parameshwara said the impact of drought extends beyond agriculture and could affect several sectors of the economy.“It must be understood that the state is facing severe drought and drought does not restrict itself to only the farming community. Many economists and financial experts say drought will have a direct impact on GST collection,” Parameshwara said, adding the govt was examining ways to improve GST collections.On drought relief, Parameshwara said three central teams were assessing the situation across drought-hit districts. The teams were initially sent to inspect 101 taluks declared drought-hit in the first round, but the state requested them to also cover taluks that were subsequently declared drought-hit.The govt declared 101 taluks drought-hit in the first phase on Aug 27, followed by 23 taluks in the second phase on Sept 17 and 53 taluks in the third phase on Sept 22, taking the total to 217 of the state’s 240 taluks.“Considering that the central teams accepted our request, almost all districts which are drought-hit are being covered by the three central teams,” he said.The state has pegged drought-related losses at about Rs 46,000 crore and is seeking Rs 10,000 crore to Rs 12,000 crore from Centre under NDRF norms. Parameshwara said a delegation led by chief minister DK Shivakumar is likely to travel to New Delhi to seek higher relief.On the increase in fees for revenue department services, Parameshwara attributed the move to a reduction in central grants and funds to the state.“It is obvious the state govt will have to increase revenue from its own resources when the Centre cuts down grants and funds. However, the increase is minimal and insignificant,” he said.Meanwhile, Karnataka’s excise revenue rose 12.5% in the second quarter of 2026-27, with the govt collecting Rs 11,595.9 crore between July and Sept, compared to Rs 10,303.9 crore in the corresponding period last year. The excise department recorded a sharper rise in revenue from beer, which increased 18.5% to Rs 1,463 crore from Rs 1,234.5 crore.Revenue from Indian-made liquor (IML) rose 13.4% to Rs 9,033 crore from Rs 7,968.6 crore. Overall, the govt’s excise collections increased by Rs 1,291.9 crore during the quarter.The increase was supported by a sharp rise in beer sales. Beer sales jumped 49.7% to 126.7 lakh case boxes from 84.6 lakh case boxes in the same period last year. IML sales, in contrast, rose only 1.5%, from 169 lakh case boxes to 171 lakh case boxes. Revenue from other sources, including licence fees and fines, remained largely unchanged at Rs 1,099.6 crore during the quarter, compared with Rs 1,100.7 crore a year earlier.
