Karnataka seeks Rs 5k crore in Central funds

BENGALURU: The Union Government should release special grants of Rs 5,495 crore to Karnataka as recommended by the the 15th Finance Commission in its report for 2020-21, demanded Home Minister Basavaraj Bommai during a virtual meeting with Union Finance Minister Nirmala Sitharaman on Monday. 

“We request the Union Government to accept the recommendations and release the special grants to us, as Karnataka is one of the best tax governed states,’’ said Bommai, attending the meeting on behalf of Chief Minister BS Yediyurappa, who holds the finance portfolio too. The Centre should share the commission’s devolution formula for the next four years to help states initiate the budget exercise, he added.

He said that the Union Government should consider the state’s interest while revising the estimates to avoid an adverse impact on the state’s expenditure commitment and not to revise it downwards.After heavy floods caused havoc in the state in August and September last year, the Union Government released Rs 1,369 crore as against Rs 2,261 crore. 

B’luru needs more funds, FM told

The pending amount should be released through the Union Budget, Bommai added.
He appealed to Nirmala Sitharaman to allocate more funds to Bengaluru-specific projects, like mobility, solid waste management and other critical infrastructure. 

“She should consider declaring Yettinahole a national project which has been estimated at a  cost of Rs 12,912 crore. The Centre’s focus should also be towards the development of Kalyana Karnataka, he said.

“The opinion of states should be considered while introducing Central Sponsored Schemes to avoid duplication and to lessen the burden on the states, which have to put in corresponding grants. Funds should be released under these schemes as per the plan in budget,” he added.

Though the procurement of grains has been done under the MSP scheme, Rs 885 crore is still pending with the Centre, which should be released at the earliest, he said.