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
PM Modi is 100 percent correct in saying bjp agent is development, but he did not say whose development. He kept this secret. However, all of us know bjp is working for the development of its high rank officials, business tycoons like Ambani, Adani, Modi etc etc. the only citizend gained from bjp are business tycoons and looters like Modi, Mallya, etc etc. Also gainer is swiss bank. Sab ka saath sab ka vikaas aur aam admi ka satyanaas
Shame on to say our agenda is development who's agenda is killing people in the name of cow, rape on minor children and you made to open bank account every poor man and collected their hardly earned money,even someone lost life on que but you say it is for nation when no rich man lost money or life on demonitisation.All your slogans are must be rewrite, such as MODI HATAO BETI BACHAO,SUB KA SATH SABKA VINASH,People in karnataka teach Bjp perfect lesson it is a state of an educational hub cannot be fooled by empty slogans.
i think Mr Prime Minister forgot he is addressing in karnataka not in UP to fool the people
The worst Government in Karnataka was under BJP rule
Three Chief Ministers
and Yeddyurappa caught in Corruption charges
reddy brothers
continues....
Modiji First try to make corruption free bjp in karnataka then think about the state
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