CM Siddaramaiah seeks Rs 55K crore for Bengaluru development from Centre
BENGALURU: Chief Minister Siddaramaiah on Wednesday claimed the 16th Finance Commission has responded positively to rectify the losses the state incurred, to the tune of around Rs 80,000 crore through special grants and tax devolution, in the past five years.
“It is demanded that cess, surcharge and non-tax revenue to the Government of India should be included in the divisible pool. For the welfare of Kalyana Karnataka, Rs 25,000 crore has been earmarked for five years and Rs 5,000 crore is being spent annually. The Central government has also been requested to give a matching grant. For Bengaluru’s development, Rs 55,000 crore is required and the Centre has been requested to grant at least half this amount,” he told reporters.
More funds were sought for disaster management in the Western Ghats, and it was suggested that better performing states should not be penalised. “Our state is contributing 9 per cent to the country’s GDP, and getting back 1.5 per cent. We requested that it be corrected. In the 14th Finance Commission, tax allocation for the state was 4.713. But in the 15th Finance Commission, this ratio dropped to 3.647, and it has been requested to correct this ratio. The Commission has been given an explanation about the 1.66 per cent decrease in tax rate,” he said. “We trust the Commission will address vertical and horizontal imbalances, keeping both equity and efficiency in mind,” he suggested.