Bengaluru: Centre shock - State's recommendation for special grant rejected


Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Feb 5: The union government has dashed the hopes of the state government by trashing a recommendation made by the 15th finance commission to release a special grant of Rs 5,495 crore to Karnataka during the next financial year.

Compared to the current fiscal, the share of the state in the central taxes for 2020-21 will be lesser by Rs 5,495 crore. The commission had recommended making good this shortfall by way of special grant. The centre, which does not agree with this view, has asked the commission to review this recommendation. The state government is now making preparations to submit a proposal to the central government to release Rs 5,495 crore special grants as per the above recommendation, and also to increase the state's share in central taxes.

As soon as the period of the 14th finance commission's recommendation expired, the 15th finance commission had sent recommendations for the year 2020 - 21. During the period of the 14th commission, the share of the state in the central taxes had been pegged at 42 percent. Now, because of formation of Jammu and Kashmir union territory and Ladakh, the share of states has been further pruned to 41 percent with a one percent cut.

Out of the above, Karnataka was set to get 3.65 percent of the central tax collection. This amount had been fixed at Rs 39,806 crore during the last term of the 14th finance commission. As the centre has scaled down its share for the next year to Rs 36,675 crore, there will be a shortfall of Rs 3,131 crore, sources pointed out. The 15th finance commission had recommended making good the shortfall by way of special grant but the union government has outright rejected this recommendation.

The state government, it is learnt, now plans to urge the centre to agree to the 15th finance commission recommendation and sanction special grant of Rs 5,495 crore to Karnataka for 2020-21. It also wants to seek additional grants as the share of the state in central taxes has further been brought down. The government also plans to request the 15th finance commission to take steps to change the yardstick used for fixing shares of state in central taxes between 2021 and 2025.

  

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Comment on this article

  • Sultan, DUBAI

    Wed, Feb 5 2020

    Dont worry CT Ravi will give from his pocket. All big big statements he use to give.

    DisAgree Agree [11] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Feb 5 2020

    Now we are sure the Uneducated hates our Educated Karnataka ...

    DisAgree Agree [16] Reply Report Abuse

  • AM, Mangalore

    Wed, Feb 5 2020

    Central Government betrayed Karnataka during natural calamities, like heavy rains, hurricanes etc, they did not gave heed and request for compensation not accepted. Kannadigas should completely reject this BJP government as in other south Indian states. I don't know where the tax payers money goes

    DisAgree [1] Agree [23] Reply Report Abuse

  • Shoan D Souza, Sacheripet

    Wed, Feb 5 2020

    Karnataka pays C GST maximum compared to other states. Karnataka is the first southern state where BJP opened it's account. Karnataka is the state which sacrificed it's manpower for BJP' s victory.
    Due to inefficient political leaders of Karnataka is suffering . Politics ...must learn from Tamil nadu or Kerala.

    DisAgree Agree [22] Reply Report Abuse

  • Anwar, Mangaluru

    Wed, Feb 5 2020

    Seems like centre dosent like Yeddi

    DisAgree [1] Agree [30] Reply Report Abuse

  • Valerian DSouza, Udupi/Mumbai

    Wed, Feb 5 2020

    In center and State tussle for fair share of taxes, people's well being is at stake.
    As union of federal states, it would have been better, if center collected direct taxes and the states collected indirect taxes. No tussle.

    DisAgree [1] Agree [23] Reply Report Abuse

  • abdul munim, mangaluru

    Wed, Feb 5 2020

    by know every Indian knows that the changu and mangu gujju pair, which is ruining this country, grants aid and all facilities and contracts only to their blood brothers from dhoklaland.

    Ambani and Adani win almost all the contracts. They are least bothered about development and helping other parts of the country. Karnataka is the worst hit as they did not even bother to give any funds for flood relief.

    But I am really happay as the goofs of Karnataka have voted this BLUEJP on communcal lines and have to suffer more.

    DisAgree [2] Agree [27] Reply Report Abuse

  • Nikhil, Mumbai

    Wed, Feb 5 2020

    Dont blame BJP who has sold our nation

    DisAgree [3] Agree [12] Reply Report Abuse

  • Anand, Mangalore

    Wed, Feb 5 2020

    Answer is in question itself.

    DisAgree Agree [3] Reply Report Abuse

  • David Pais, Mangalore

    Wed, Feb 5 2020

    center's treasury is empty. government is in sale

    DisAgree [2] Agree [41] Reply Report Abuse

  • Chiguru, Mumbai

    Wed, Feb 5 2020

    Jai India

    DisAgree [1] Agree [17] Reply Report Abuse


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Title : Bengaluru: Centre shock - State's recommendation for special grant rejected


 
 
 
 

 
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