FM Nirmala Sitharaman rubbishes Karnataka govt's claim of injustice in release of central grants
Bengaluru, Mar 24: Union Finance Minister Nirmala Sitharaman on Sunday rubbished the Karnataka government's claim that the Centre was not releasing its due share of special grants' as recommended by the 15th Finance Commission.
She denied that there was any recommendation by the Finance Commission.
"Karnataka government claims that Rs 5,495 crore special grant was not released to Karnataka and this is totally false. The Finance Commission did not in its final report recommend any such special grant," the Finance Minister claimed.
Sitharaman's statement came a day after Karnataka filed a writ petition in the Supreme Court requesting a direction to the Centre to immediately release grants under the National Disaster Response Fund (NDRF) to the state, which is reeling under acute drought.
In February, Karnataka Chief Minister Siddaramaiah, his deputy D K Shivakumar, Congress MLAs and other Congress leaders at the central level staged a demonstration in New Delhi alleging that the Centre was apathetic towards Karnataka's woes and was not releasing its due share of funds.
"I want to make it a point to tell you in detail that every penny that is due to Karnataka, every paisa that is due to Karnataka, is given, and given on time," Sitharaman said during a talk organised by Thinkers Forum, Jayanagar in the city.
According to the FM, tax devolution has increased under Prime Minister Narendra Modi between 2014 and 2024 by 258 per cent, which is 3.5 times more compared to the 10 years during the previous UPA rule.
In these 10 years of BJP rule, the grants-in-aid have also increased to 273 per cent, which is 3.7 times more than what it was the previous 10 years, she claimed.
The Finance Minister said that between 2004 and 2014, the money received by Karnataka per year was Rs 81,795 crore, which went up to Rs 2,93,226 crore from 2014 to 2024.
"Nobody's boasting that we've given this much or anything, but to be wrongly alleged, accused that you're not giving money due to Karnataka, I'm sorry, please look at the figures, look at the dates when the money was received and then tell us something which is specific and right, so that I can respond and I will respond," Sitharaman declared.
"But when we have given it in time and given sometimes even in advance of the time, to just blanket mislead the people to say money is not coming in is not responsible at all," she charged.
Another set of payments to Karnataka that come under the name of grants-in-aid too increased 3.7 times, Sitharaman said.
"The grant-in-aid between 2004-14 was Rs 60,779.84 crore, which increased to Rs 2,26,832 crore. So I just want the state government to please look into the papers, keep the facts and not mislead the people of Karnataka," she pointed out.
According to Sitharaman, after Covid, Prime Minister Modi asked the Finance Ministry to give states interest-free loans for 50 years to create infrastructure and spend on the ongoing infrastructure work.
"No Finance Commission had recommended, but the Centre decided to give all the state interest-free loans for 50 years It might probably even get written off. What was the share of Karnataka in that? Rs 7,130 crore since 2020-21," the finance minister said.
She sought to know whether the state government acknowledged that Karnataka received the amount, which was not part of the recommendations of the Finance Commission.
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Karnataka Minister Muniyappa to hold meeting to resolve Auto LPG supply issue
Bengaluru (PTI): Karnataka Minister K H Muniyappa on Monday said that he will call a meeting on April 10 aimed at resolving the Auto LPG supply issue in the state.
He also said that private oil companies had hiked LPG prices for vehicles, leading to long queues at public sector stations.
Bengaluru and several other places in the state are witnessing disruption in auto services, hit by a shortage of Auto LPG. Long queues of autos are seen outside fuel stations at many places.
On Monday, the minister met with representatives of auto drivers' associations and heard their concerns.
"We are aware that auto drivers are in distress. Around 3,000 Auto LPG cylinders are being supplied by the central government daily, but private suppliers have increased the price, which is causing inconvenience to auto drivers. I will immediately call a meeting to resolve the issue," Muniyappa, who holds Food, Civil Supplies & Consumer Affairs portfolios, said.
Speaking to reporters here, he said, "The government supplies approximately 3,000 Auto LPG cylinders daily. The private companies also supply equal numbers of cylinders. I have learned that private companies have increased the prices. I will speak to the concerned officials."
"On April 10, I will call a meeting and try to solve the issue. Auto drivers' lives depend on these LPG supplies, so I will try to resolve the issue on a priority basis," he said, adding that private companies representatives, union government officials, Indian Oil Corporation coordinators, police and senior state government officials will also be called for the meeting.
According to official sources, PSU-operated outlets, including those of IOC, are retailing Auto LPG at around Rs 89.52 per litre in Bengaluru, whereas private marketers are selling between Rs 99 and Rs 105 per litre. This difference has led to a significant shift in customer preference toward PSU-operated Auto LPG Dispensing Stations (ALDS), resulting in increased footfall and longer wait times at these stations.
Stating that the situation is serious as the war is on in West Asia, the minister sought cooperation from everyone.
"The energy or fuel crisis is there across the world. If the Centre had planned to get the energy supplies from Russia a month in advance, this situation would not have arisen. Things have happened now. Let's try and resolve the issues," he added.
