Karnataka's Call for Greater Financial Support Amidst Regional Imbalances

Karnataka Chief Minister Siddaramaiah sought increased financial devolution from the Central government to address regional imbalances, particularly in Kalyana Karnataka, and the challenges of urbanisation. He highlighted the state's need for significant investment in Bengaluru, equitable development, and disaster mitigation. Karnataka faced substantial financial losses due to reduced revenue transfers.

Chief Minister Siddaramaiah of Karnataka highlighted the state's urgent need for greater financial devolution from the Central government to address growing regional imbalances, especially in the Kalyana Karnataka region, and the challenges of urbanization.

Addressing the 16th Finance Commission, Siddaramaiah emphasized that Bengaluru requires an investment of Rs 55,586 crore over the next five years, for which the state is seeking a grant of Rs 27,793 crore. Similarly, for the equitable development of the Kalyana Karnataka region, the state has invested Rs 25,000 crore and is requesting a matching grant from the 16th Finance Commission. Additionally, Rs 10,000 crore is needed for effective disaster mitigation in the Western Ghats.

Siddaramaiah criticized the 15th Finance Commission's decision, which reduced Karnataka's share from 4.713 to 3.647 percent, resulting in a loss of Rs 68,275 crore. Although the Commission recommended state-specific grants of Rs 11,495 crore, they were not approved, leading to a total loss of Rs 79,770 crore for Karnataka. The state also sees a revenue transfer of Rs 35,000-40,000 crore per year to other states, despite its strong fiscal and demographic performance.

(With inputs from agencies.)