Union Finance Minister Nirmala Sitharaman refuted claims by the Karnataka government of neglect from the Centre, stating that the state received five times more tax devolution and significantly higher grants compared to the previous UPA tenure.
Union Finance Minister Nirmala Sitharaman on Sunday targeted the Congress-led Karnataka government and Chief Minister DK Shivakumar, accusing them of peddling a “false narrative” that the Centre neglects the State. Addressing the Viksit Bharat Sankalpa Samavesha in Bengaluru, Sitharaman informed that Karnataka has received five times more Central tax devolution as against allocation during the previous Congress-led UPA tenure.
‘Karnataka received 5x more funds vs UPA’
She refuted allegations of the State government in Karnataka that the State is deprived of Central allocations. “The devolution of taxes determined by the Finance Commission has seen Karnataka receive Rs 4 lakh crore between 2014 and 2026. This is five times more than the Rs 82,000 crore given to the state during the five years pre-2014,” she said.
“In the current financial year alone, the tax devolution to Karnataka is Rs 63,000 crore. This single year’s transfer is equal to 76 per cent of what the state received in 10 full years under the previous UPA dispensation. After seeing these numbers, they have gone ‘Igdam Chup’ (completely silent),” she said.
The Finance Minister noted that Grants-in-aid to Karnataka rose to Rs 2.71 lakh crore between 2014 and 2026, compared to just Rs 60,000 crore during the 10 years of the UPA government. She also emphasized the special Rs 18,000 crore interest-free loan (50-year tenure) provided to Karnataka since 2021. “This was not recommended by the Finance Commission; there was no compulsion on us. But Prime Minister Modi felt every state should have money to invest in capital assets,” the Union Minister said.
Infrastructure and Industrial Development
Futher Sitharaman listed the Centre’s major contributions. The annual average budget for Karnataka Railways under UPA (2009-14) was Rs 835 crore and under PM Modi’s government, it jumped nine-fold to Rs 7,700 crore annually. She added that 1,650 km of new tracks have been laid and 96.5 per cent of the state’s rail network is now electrified. She pointed out that 10 Vande Bharat trains have been introduced in the state. Apart from the world-class Terminal 2 in Bengaluru, seven ‘Udaan’ airports are now operational, with new greenfield airports approved for Vijayapura and Hassan. Over 8,100 km of National Highways have been constructed.
She also highlighted the 8,500-acre Tumkur Industrial Node, the first of its kind in South India, involving a Rs 7,000 crore investment for the Bengaluru Chennai Industrial corridor project. She further said that Rs 1354 crore rupees were granted to take up Renewable energy projects. Koppal and Gadag, she said, will be green energy hubs by June next year.
Benefits from Central Schemes
Sitharaman said that Karnataka has also benefited from Jandhan, Mudra loans, Ayushman, Jal Jeevan Mission, Ujwala, Kisan Sammaan, Janaushadhi Kendras and incentives given to start-ups.
Criticism over Jan Aushadhi Kendras
Sitharaman also criticised the Karnataka government for allegedly shutting down PM Jan Aushadhi Kendras, which provide affordable medicines to the poor.
“I don’t know what common sense prevailed, but they have opened them up now after a High Court order. Can you believe the pettiness?” she asked. “They are feeling insecure that Modi’s measures are touching the hearts of the middle class. They shut these centres to claim we only work for big industrialists, but it is the common citizen who suffered.”
‘Stop Grievance Politics’
The Union Finance Minister stated that Prime Minister Modi views all Chief Ministers as “Team India” and remains committed to cooperative federalism. “The constant narrative of ‘Karnataka is not getting its dues’ is being used to make people doubt the Centre. But facts are on the table. We expect the states to contribute to the ‘Viksit Bharat’ mission instead of engaging in grievance politics,” Sitharaman said. (ANI)
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