Bengaluru, Aug 21 — Karnataka Chief Minister D.K. Shivakumar on Friday urged chartered accountants to advise the state government on improving revenue collection, plugging leakages, and correcting financial lapses without burdening businesses.

Addressing a dialogue conference organised by the Institute of Chartered Accountants of India (ICAI) at Palace Grounds here, Shivakumar said the government was open to suggestions and willing to correct its mistakes.

"Our government is an open book. We are open to new ideas and solutions. Give us your suggestions to prevent mistakes and plug resource leakages," he said.

Praising chartered accountants for their role in protecting public trust and the economy, Shivakumar said: "Trust is in your blood. You are the guardians of trust, and you must protect it. We believe what you tell us. You should protect our lives and property and guide us in increasing revenue."

He also expressed concern over what he termed harassment of honest taxpayers by government agencies.

"Honest taxpayers are subjected to mental harassment by officials. Those who indulge in theft are not questioned. Around 12 lakh entrepreneurs have left the country, saying they have had enough of the Income Tax Department, the ED, and the CBI," he alleged.

Comparing Karnataka with other states, Shivakumar claimed that around 90 per cent of transactions in Karnataka were conducted through white money, while only about 30 per cent of transactions in Gujarat were conducted through accounted money when he visited the state a few years ago.

"Karnataka is more disciplined compared to other states," he said.

The Chief Minister said Karnataka was emerging as an economic powerhouse and that the guidance of chartered accountants was essential for sustaining its growth.

"South India is the fuel for India's progress. India cannot progress without South India," he said, adding that he had made this argument before Union Home Minister Amit Shah at a recent meeting.

Shivakumar said Bengaluru had become a global economic hub and claimed that around two lakh foreign passport holders were working in the city. He said Karnataka was an ideal destination for investment, entrepreneurship, employment generation, innovation and exports.

Referring to the ongoing Assembly session, Shivakumar said the opposition BJP was unable to accept him and his government.

"When I agreed to attend this programme, I did not know that the Assembly session would be held. But the session is now underway. My BJP friends in the Opposition are unable to digest me and my government," he said.

He alleged that the opposition was preventing discussions in the legislature because it had no substantial issue with the policies being implemented by his government.

"Jealousy has no cure. That is why they are not allowing us to have discussions,: he said.

Referring to the Southern Zonal Council meeting held in Chennai on Thursday, Shivakumar said he had raised issues concerning Karnataka and the region.

He said Karnataka was the second-highest tax-paying state in the country and claimed that the state accounted for 42 per cent of India's software exports.

"Karnataka is leading in IT-BT, technology, aerospace and several other sectors. The world's top 500 companies are operating here because of the talent available in the state," he said.

Shivakumar said the contribution made by Karnataka and other southern states should be recognised while seeking a fair share of central resources.

He compared the contribution of South India to a lamp, saying the region's contribution was like the wick and oil that enabled a lamp to burn, even though they were not always visible.

The Chief Minister also urged chartered accountants to guide industries on the effective utilisation of Corporate Social Responsibility (CSR) funds.

He said the government wanted CSR resources to be directed towards strengthening primary education in rural areas and that a policy was being formulated in this regard.

Shivakumar said workers from northeastern states were coming to Karnataka for jobs in the services sector, while workers from northern states were employed in construction and traders from Andhra Pradesh were doing business in the state.

He urged chartered accountants to guide such businesses and workers to increase their earnings and ensure proper tax compliance.

Shivakumar said the state government was spending around Rs 52,000 crore annually on its guarantee schemes and around Rs 20,000 crore on providing free electricity to farmers' pump sets, besides spending on various pension schemes.

"Tell us how the government can increase revenue without causing hardship to trade and industry," he said.

He said the government had taken social and economic security to the next level and claimed that the model adopted by Karnataka had subsequently been followed by other states despite criticism from the Prime Minister.

On Bengaluru's growing population and traffic congestion, Shivakumar said the city's population had increased from around 70 lakh 25 years ago to 1.4 crore today, while the number of vehicles had reached around 1.35 crore.

He said the government was pursuing tunnel roads to address traffic congestion but alleged that opposition leaders were obstructing the proposal.

Concluding his address, Shivakumar said the government was not at the event merely to receive applause but to assure chartered accountants that it would work with them.

“We are with you. You should also stand with us,” he said, extending Varamahalakshmi festival greetings to the participants.

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