Bengaluru, Feb 5: Despite installing a BJP government in Karnataka through disguised operation Kamala, the Prime Minister Narendra Modi-led union government has continued its step motherly attitude towards this south Indian state.
Under the new formula adopted to share central taxes among states Karnataka will be the worst-affected. Though the 15th Finance Commission has recommended a special grant of Rs 5,495 crore for the state for 2020-21, the Centre appears reluctant to pay up and instead has asked for the proposal to be reviewed.
During the Union budget, the report of the 14th Finance Commission headed by NK Singh for 2020-21 was tabled in Lok Sabha. It shows besides Karnataka, Telangana, Mizoram and Kerala saw their central tax share decrease, while Uttar Pradesh, Bihar and Maharashtra were top gainers.
Karnataka's share has decreased from 4.7% provided by the previous finance commission, to 3.6%. Acknowledging there is a steep decline in Karnataka's share from 2019-20, the finance commission has recommended a special grant of Rs 5,495 crore for the state.
Its share in 2019-20 was Rs 36,675 crore, but under the new formula, Karnataka will get only Rs 31,180 crore in 2020-21 from the divisible pool of Rs 8.5 lakh crore - a decline of 22.5%.
Also, the decrease for Karnataka comes on the back of a shortfall in 2019-20. While the state was entitled to Rs 39,806 crore from the divisible pool, it got only Rs 36,675 crore as the Centre suffered a tax revenue shortfall of Rs 1.5 lakh crore.
What is more disheartening though is the Centre's refusal to pay the special grant. Instead, the Union finance ministry has asked the finance commission to reconsider the recommendation. This has prompted the state to take up the issue with the Centre.
"The decline in central taxes devolution comes at a time when the state is going through a tough financial situation. Steps are being taken to ensure Karnataka gets justice," said chief secretary TM Vijay Bhaskar.
Officials said besides corrective measures for 2020-21, the focus will be on ensuring a fair share in subsequent years. However, Karnataka has little chance of getting its dues as the Centre is known to be prudent when distributing tax proceeds among states.
"The Centre has certain views on devolution. We have done our duty by submitting the interim report. It's up to the states to convince the Centre," said Ravi Kota, joint secretary of 15th Finance Commission.
Under the new formula, the commission changed the weightage for some of the six criteria it considers - population, area, forest cover, income distance, demographic performance and tax effort.
Comments
raitha morcha... i can't see any raita in the above picture.. only bjp workers.
what siddaramaiah can do on cauvery or farmers suicide. cauvery issue ordered by supreme court and farmers taking extreme steps for their loan burden.
Blaming other party is an easy task. Solving a problem is a difficult task. What did BJP as a ruling party do to solve this problem during the tenure of Yeddy, DVS and Shettar? Bull shit.
CM for what. he not even responded to normal peoples issue on cauvery water. 4 days protest, curfew if he cannot stop this, why we need CM like him.
Bjp shut your mouth, kateel is a big criminal, Murderer
Bjp murdabad, Congress Jindabad.
Bjp seriously u guys are gone mad. suicides cannot be called as murders. farmers should take their own responsibility.. why only blaming govt.
BJP is out of mind.. farmers suicide is a trend now, they know their family will get lakh of rupees. and also many burden because of the loan they have taken from the bank, not only farmers here normal people also a loan defaulters of bank unable to pay the loan they will take extreme step but in karnataka for farmers suicide only matters.
Yes siddaramaiah is a big murderer.
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