“Rs. 80,000-crore deficit for Karnataka in last five years”

Bengaluru:  A sum of Rs. 80,000 crore in special grants and tax allocations to the state is due in the last five years, Chief Minister Siddaramaiah has said. Chairing a meeting on state finances, he said the 16th Finance Commission has been requested to rectify this shortfall and the Commission has responded positively. He spoke to the media near the Taj West End Hotel on Thursday, after the proceedings.

“It has been demanded that cess and surcharge be included in the divisible pool and non-tax revenue to the Government of India should also be included in the divisible pool.  Rs. 5000 crore is being spent for the welfare of Karnataka and over five years, it has totalled Rs 25,000 crore. The central government has been requested to give a corresponding grant for this purpose. Development of Bengaluru is going to cost Rs. 55,000 crore and we have requested the Centre to grant at least half this amount,” he said.  

More funds were sought for disaster management in the Western Ghats.  “Better performing states should not be penalized.   Our state is contributing 9 percent to the country’s GDP, out of which we get only 1.5 percent in return.  A correction in policy has been requested. In the 14th Finance Commission, the ratio of tax allocation for Karnataka was 4.713.  But in the 15th Finance Commission, this ratio has come down to 3.647, which must be corrected,” he said.   “When Narendra Modi was Chief Minister of Gujarat, the tax distribution was 50 percent.  They demanded a 50 percent share in tax revenues.  Since many states have made such a demand, I am confident Karnataka’s demand can be fulfilled,” the CM said.