Jairam Ramesh says that the Finance Commission had recommended Rs 5,495 crore in special grants, plus Rs 6,000 crore for specific projects, to be transferred to Karnataka…reports Asian Lite News
The Congress on Monday accused the Modi government of withholding funds that should “rightfully” go to Karnataka, saying the people of the state are being made to pay the price just because they exercised their democratic right to elect a Congress government.
Congress general secretary in-charge, communications, Jairam Ramesh alleged that Prime Minister Narendra Modi is constantly trying to “throttle” the finances of India’s states.
His remarks came after Karnataka Chief Minister Siddaramaiah alleged in a post on X that Union Finance Minister Nirmala Sitharaman is consistently denying the written word.
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“The Modi government and its remote-controlled ministers will cross every line to violate the spirit of federalism, to sidestep the recommendations of Constitutional bodies, and to unleash their political vendettas. This time, the price is being paid by the people of Karnataka,” said Jairam Ramesh.
“The interim report of the 15 FC (Finance Commission) for 2020-21 sanctioned Rs 6764 crores for three states, viz Karnataka (Rs 5495 crores), Telangana (Rs 723 crores) & Mizoram (Rs 546 crores),” Siddaramaiah said.
“These grants were recommended not because of any special love for these states. These were recommended to ensure that no state receives a lower share in devolution in absolute numbers than the previous year,” he said.
“In the final report, the 15th Finance Commission also recommended Rs 6,000 crore for Karnataka, Rs 3,000 crore for revival of water bodies and Rs 3,000 crore for the Peripheral Ring Road for Bengaluru,” he said.
The Ministry of Finance refused to accept these two recommendations, thus denying the rightful share for Karnataka, Siddaramaiah said.
“Smt @nsitharaman avare, we are not asking for funds to our 5 Guarantees. We have adequate provision for those in our budget, thank you,” the chief minister said.
“Since you don’t seem to have any faith in or commitment to the federal polity enshrined in our Constitution, you don’t seem to understand the concept of rightful share of the states. Kannadigas demand their share. They are not begging,” Siddaramaiah said.
Tagging Siddaramaiah’s post, Ramesh said the Modi government and its “remote-controlled ministers” will cross every line to violate the spirit of federalism, sidestep the recommendations of constitutional bodies and unleash their political vendettas.
“This time, the price is being paid by the people of Karnataka, just because they exercised their democratic right to elect a Congress government,” he alleged.
Ramesh also pointed out that the Finance Commission had recommended Rs 5,495 crore in special grants, plus Rs 6,000 crore for specific projects, to be transferred to Karnataka.
Even though Karnataka contributes Rs 4.3 lakh crore each year in taxes, the finance minister, incidentally a member of the Rajya Sabha from Karnataka, has rejected these recommendations and withheld almost Rs 12,000 crore in funds that should rightfully go to the state, he claimed.
“While CM Modi enjoyed talking about states’ problems and complaining about the share of funds going to Gujarat, PM Modi constantly tries to throttle the finances of India’s states,” Ramesh alleged.
“A few months ago, a top NITI Aayog official revealed that the Modi Sarkar had tried to intimidate the 14th Finance Commission into lowering the recommended share of taxes to the states,” he claimed.
On one side there is the ‘Bharat Jodo’ ideology of the Congress and on the other side, this “self-serving petty politics of the BJP”, Ramesh said.
FM rubbishes K’taka’s claim
Earlier, Nirmala Sitharaman had 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.
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.
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.
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