Bengaluru, Dec. 18 -- The Mid Year Review of State Finances, which was presented in the legislative assembly on Wednesday, showed that weaker tax inflows and rising welfare costs, among other factors, threatened to push the state's revenue deficit beyond earlier projections.

The current fiscal year's budget projected a revenue deficit of Rs.19,262 crore, which, according to the report, was now vulnerable in the wake of the recent GST rate rationalisation and non- realisation of taxes of mines. It noted that officials foresaw "a significant reduction" in revenue.

The government expects to miss out on over Rs.3,000 crores of tax money from mining and related ventures, said the report, as the Karnataka Mineral Rights and Mineral Bearing La...