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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Priyanka Gandhi takes oath as LS MP after big win from Wayanad
New Delhi (PTI): Congress leader Priyanka Gandhi Vadra took oath as a Lok Sabha MP on Thursday following her thumping victory from Kerala's Wayanad in a bypoll.
The 52-year-old, who joins her mother Sonia and brother Rahul as an MP in what is a rare instance of three members of a family together in Parliament, took affirmation in Hindi while holding a copy of the Constitution soon after the House met.
Ravindra Chavan (Cong), who won the Nanded bypoll also took oath in Marathi in the name of God. The bypoll was necessitated following the demise of his father Vasantrao Chavan recently.
Priyanka Gandhi took the plunge into active politics in 2019 and was later appointed Congress general secretary. Five years after that, Priyanka Gandhi begins her journey as an elected representative of the people.
With a winning margin of more than 4.1 lakh votes, she surpassed the tally of her brother Rahul Gandhi from Wayanad in Kerala.
Priyanka Gandhi's entry into Parliament comes at a difficult time for the party, which has been jolted by electoral defeats in Haryana and Maharashtra. It would be interesting to see if she is able to give a much-needed fillip to the grand old party and help put it back on the electoral track.
Often drawing comparisons with her grandmother Indira Gandhi for their similarity in looks and way of speaking, Priyanka Gandhi has been the go-to campaigner for the party since her entry into active politics and even before that when she campaigned for her mother Sonia and brother Rahul.
Congress leaders from Wayanad handed over the election certificate of the Wayanad parliamentary by-election to Priyanka Gandhi on Wednesday and conveyed their best wishes.
Priyanka Gandhi on Saturday won the Wayanad Lok Sabha bypoll with a thumping margin of over four lakh votes, defeating Sathyan Mokeri of the CPI(M)-led LDF.
VIDEO | Congress leader Priyanka Gandhi Vadra (@priyankagandhi) takes oath as Lok Sabha MP from Kerala's #Wayanad.#ParliamentWinterSession
— Press Trust of India (@PTI_News) November 28, 2024
(Source: Third Party)
(Full video available on PTI Videos - https://t.co/n147TvrpG7) pic.twitter.com/4JbL0KaShE
further details are awaited.
