Siddaramaiah writes to FM Nirmala Sitharaman, urges immediate release of Special Grants to Karnataka
Bengaluru: Chief Minister of Karnataka, Siddaramaiah, has penned a letter to Union Finance Minister Nirmala Sitharaman, highlighting concerns and making an urgent plea for the release of Special Grants and State Specific Grants for Karnataka. The letter emphasized the critical financial situation faced by the state and urged the Finance Minister to consider the recommendations of the 15th Finance Commission.
In the detailed letter, Chief Minister Siddaramaiah expressed concern over the reduction in Karnataka's share in tax devolution recommended by the 15th Finance Commission. The share has been reduced to 3.647% of the divisible pool for the period between 2020-21 and 2025-26, down from the 4.71% recommended by the previous 14th Finance Commission. This drastic 23% decrease in allocation is attributed to the reduction in devolution share.
Another issue raised by Siddaramaiah is the adverse impact of the Income-Distance criteria adopted by the Commission. He pointed out that the new methodology for computing the Gross State Domestic Product (GSDP) under the 2011-12 series has disproportionately increased Karnataka's GSDP by over 30%, significantly higher than the average increase of less than 9% observed in other states. This change has led to a decrease in the State's standing, impacting its share in the Income-Distance parameter from 4.2% as per the 14th Finance Commission to a mere 1.1%. Consequently, the State's devolution share has also decreased from 4.71% to 3.64%.
Additionally, Chief Minister Siddaramaiah highlighted the absence of proportional contribution of the growth in GSDP attributed to IT-related services to State taxes. He underscored the importance of acknowledging this discrepancy and addressing the implications on financial allocations.
The letter further stated that the reduction in tax devolution share has led to a substantial decrease in total tax devolution to Karnataka over the past four years, amounting to Rs. 37,011 crore between FY 2020-21 and FY 2023-24.
Chief Minister Siddaramaiah also drew attention to the unfulfilled recommendations of the 15th Finance Commission regarding Special Grants and State Specific Grants. Despite the Commission's recommendation of Rs. 5,495 crore for Special Grants in 2020-21 and Rs. 6,000 crores for specific projects, these grants have not yet been released to the state. This delay has further strained Karnataka's already fragile fiscal position, the letter added.
Siddaramaiah urgently urged Finance Minister Nirmala Sitharaman to reconsider the Commission's recommendations and release the Special Grants and State Specific Grants to Karnataka. He underscored the critical need for these funds to address the State's financial constraints and maintain fiscal stability.
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Xi, Trump reach series of new common understandings: China's foreign ministry
Beijing (PTI): Chinese President Xi Jinping and his US counterpart Donald Trump had an in-depth exchange of views on major issues concerning the two countries and the world, and reached a series of new common understandings, a Chinese foreign ministry spokesperson said Friday.
Xi and Trump, who is on a three-day visit to China, met twice on Thursday and discussed a range of bilateral and global issues.
Trump is due to leave on Friday after a luncheon meeting with Xi.
Summing up the outcomes of Trump’s visit to Beijing, a Chinese Foreign Ministry spokesperson said the two presidents had an in-depth exchange of views on major issues concerning the two countries and the world and reached a series of new common understandings.
They agreed on a new vision of building a constructive China-US relationship of strategic stability to provide strategic guidance for bilateral relations over the next three years and beyond.
The two presidents also agreed to promote the steady, sound and sustainable development of China-US relations, and bring more peace, prosperity and progress to the world, said a statement by the ministry’s spokesperson.
Trump visited China at the invitation of Xi.
The two presidents are meeting in person again for the first time since their Busan meeting last October, and it is the first visit to China by a US president in nine years, the statement said.
On Thursday, President Xi held a welcome ceremony and a banquet for Trump, held talks and visited the Temple of Heaven with him.
VIDEO | Beijing: On second day of bilateral talks, US President Donald Trump (@POTUS) thanks Chinese President Xi Jinping for 'incredible' China trip.
— Press Trust of India (@PTI_News) May 15, 2026
Trump says, "Thank you very much. This has been an incredible visit. I think a lot of good has come of it. We've made some… pic.twitter.com/7A7lbEzLdC
