Karnataka CM's economic advisor Rayareddi lashes out at Centre over funds

Rayareddi alleged that the Centre has reduced grants for most centrally sponsored schemes, which is why it has not released its share of Rs 19,102 crore to the state.

09/04/2025/Karnataka/Bengaluru/Chief Minister Siddaramaiah Economic Advisor Basavaraj Rayareddy at the pressconfrence in Bengaluru on Wednesday.Exp Center-Center-Chennai

BENGALURU: Basavaraj Rayareddi, Economic Advisor to Chief minister Siddaramaiah, on Tuesday slammed the Centre in the Assembly for not releasing the state’s share of grants, including those under Jal Jeevan Mission (JJM).

Rayareddi said the state has adhered to the Fiscal Responsibility and Budget Management (FRBM) Act.

“The state’s total liabilities are below 25 per cent of GSDP, the RBI may show up at 26 per cent but the CM will reply to it. The fiscal deficit is below 3 per cent. The state’s revenue deficit is at 0.69 per cent of budget outlay whereas the Centre’s is 1.5 per cent”, he said. The Centre’s grant for state is fixed at Rs 16,000 crore for last three years.

“I don’t say there is no corruption which is a global phenomenon but Siddaramaiah has put efforts to curb it through reforms”, he claimed.

He alleged the Centre has reduced grants for most of the centrally sponsored schemes which was why it has not released its share of Rs 19,102 crore due to the state. Even against the schemes of housing, education, roads the grants were reduced, he alleged.