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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15 IAS officers transferred in Haryana
Chandigarh (PTI): The Haryana government transferred 15 IAS officers with immediate effect on Wednesday.
Among those who have been transferred are Vineet Garg, Chairman, Haryana State Pollution Control Board. He has been posted as the additional chief secretary to the government's printing and stationery department, relieving Raja Shekhar Vundru of the charge, a government order said.
Ajay Kumar, Deputy Commissioner, Gurugram, has been transferred and posted as the deputy principal secretary-II to the chief minister against a newly-created post.
Pankaj Agarwal, Principal Secretary, Irrigation and Water Resources Department, has been posted as the principal secretary in the architecture department, relieving Apporva Kumar Singh of the charge.
Saket Kumar, Additional Principal Secretary to Chief Minister, Commissioner and Secretary, Development and Panchayats Department, has been transferred and posted as the commissioner and secretary in the archives department, relieving Shekhar Vidyarthi of the charge.
Mani Ram Sharma, Registrar, Cooperative Societies, has been posted as the secretary in the health department, relieving Rippudaman Singh Dhillon of the charge.
