Adopt growth-oriented approach in tax devolution, Siddaramaiah tells Nirmala Sitharaman
The Chief Minister, during his meeting with Union Finance Minister Nirmala Sitharaman in Delhi on Tuesday, highlighted the developmental challenges in Bengaluru, Kalyana Karnataka, and Malnad regions, and argued that a fair and pro-growth devolution would accelerate the State's growth.
Special grants
The State has sought special grants to Bengaluru since it requires ₹1.15 lakh crore to undertake capital work, while grants have been sought for the Malnad region affected by floods. The State has also sought grants for the Kalyana Karnataka region that is covered under the Article 371 J providing special status, but is yet to receive money from the Centre.
Claiming that Karnataka has lost a total of ₹80,000 crore during the award period of the 15th Finance Commission, the Chief Minister said that Karnataka's share in tax devolution declined from 4.713% to 3.647%, while the State was also not allocated ₹11,495 crore of the special grants. A major reason for this, he pointed out, was the over-reliance on the income distance criterion, which received 45% weightage under the 15th FC. 'The State government has requested the 16th FC that the weightage for income distance should be reduced by 20 percentage points and reallocated to fiscal contribution, which is the State's share in the national GDP,' he said.
The Chief Minister told reporters in Delhi that his meeting with the Finance Minister followed his earlier meeting with the chairperson and members of the 16th Finance Commission. He said that an additional memorandum has been submitted. 'Karnataka's population constitutes 5% of the country's population, but the State contributes 8.7% to the GDP, which is third in the country. In GST collection, we are second in the country.'
Revenue deficit grants
Karnataka has also requested the Centre to discontinue the Revenue Deficit Grants in their current format since they are against the principles of fiscal discipline as proposed in the Fiscal Responsibility and Budget Management framework. The State has proposed that the same amount — which was 1.92% of the gross union receipts under the 15th FC — should be redistributed among all States using the horizontal devolution formula. The Chief Minister said, 'Deficit grants have been given to Kerala and Tamil Nadu also. Give it to all States or remove it.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
an hour ago
- News18
'I've A Duty...': Siddaramaiah Reacts To Biocon's Kiran, Repeats Claim On Vaccine-Heart Attack Link
Last Updated: Karnataka CM Siddaramaiah questioned Covid-19 vaccine safety, while Biocon's Kiran Mazumdar-Shaw defended it. Karnataka Chief Minister Siddaramaiah on Thursday reacted to Biocon founder Kiran Mazumdar-Shaw after she dismissed the former's claim over Covid-19 vaccination and its link to heart attack deaths in Hassan. In a post on X, Siddaramaiah said seeking clarity is not 'misinformation" and called an 'act of governance rooted in empathy". He also shared that an article in the Telegraph, where 'AstraZeneca admitted side effects of vaccine," and said that several studies and even admissions by manufacturers have acknowledged rare but serious adverse events, including cardiac issues. As Chief Minister, I have a duty to respond to the genuine concerns of people who have lost loved ones unexpectedly. When parents lose their young children or families lose breadwinners without warning, seeking clarity is not misinformation; it is an act of governance rooted in… — Siddaramaiah (@siddaramaiah) July 3, 2025 Siddaramaiah's concerns have also been dismissed by several top health experts in the country. The Biocon founder objected to Siddaramaiah's claim that Covid-19 vaccines were 'hastily" approved and said rigorous protocols aligned with global standards for safety and efficacy were followed. 'COVID-19 vaccines developed in India were approved under the Emergency Use Authorisation framework, following rigorous protocols aligned with global standards for safety and efficacy. To suggest that these vaccines were 'hastily' approved is factually incorrect and contributes to public misinformation. These vaccines have saved millions of lives and, like all vaccines, may cause side effects in a very small number of individuals. It is important to acknowledge the science and data-driven processes behind their development, rather than engage in retrospective blame," she wrote in a post on X. Meanwhile, NITI Aayog Member (Health) Dr VK Paul said that factors such as a family history of heart disease, severe COVID-19 illness requiring hospitalisation, smoking, and excessive alcohol consumption could increase heart risk — and cautioned against believing in unfounded theories. He said Covid vaccines were tested after systematic laboratory studies, animal toxicity studies and clinical studies and they fulfill scientific and all regulatory and benchmark criteria. 'The notion of sudden deaths linked to the vaccines has been making rounds and to address it systematically, a study was commissioned by the ICMR… published in 2023 and conducted in 47 hospital sites… More than 700 young individuals who suffered sudden deaths were included… What emerged was that Covid vaccine was actually protective against sudden deaths, decreasing its risk… What was responsible for sudden death was – if the individual had a genetic tendency due to family history of heart ailments, if one had suffered more severe Covid-19 illness that required hospitalisation, smoking, and those who had consumed excess alcohol… Let's not be prey to unfounded notions," he said.
The Hindu
an hour ago
- The Hindu
New West Bengal BJP chief seeks Left supporters' help to oust Trinamool from power
The newly elected president of the Bharatiya Janata Party's West Bengal unit, Samik Bhattacharya, on Thursday (July 3, 2025) called for the defeat of the Trinamool Congress in next year's State Assembly election, seeking Left supporters' aid in removing Chief Minister Mamata Banerjee from power. In his first address after taking over the post from Sukanta Majumdar, Mr. Bhattacharya, 62, urged Opposition political parties in the State to keep their individual flags aside for the time being. 'Leave all ideologies aside and come together to remove Trinamool from power. Then you can raise your flag and find your own path again. There will be a space for Opposition,' the State BJP chief said. However, the Leader of the Opposition Suvendu Adhikari, who was speaking at the same event, urged the people of the State to be careful of the Left parties. 'They call themselves secular, bring out Muslims in their rallies and divide Hindu votes. In the last Lok Sabha polls, the BJP lost 12 seats in the State because of them,' Mr. Adhikari said. Over 10% votes with Left, Congress Though the BJP has emerged as the main Opposition party in West Bengal, it trails behind the ruling Trinamool Congress by a vote share margin of 10%. The Left Front, led by the Communist Party of India (Marxist), and the Congress do not have any seats in the West Bengal Assembly, but together, these parties garnered a vote share of over 10% in the last election. Mr. Bhattacharya said that the people of West Bengal have come to realise that the BJP can remove the Trinamool Congress from power, and that the slogan of 'SonarBengal (Golden Bengal)' can become a reality by bringing investment to the State. 'No power can ensure that Mamata Banerjee will return to power in the State for the fourth time in 2026,' Mr. Bhattacharya said. Tracing the history of the BJP in West Bengal — from the days when it was an 'irrelevant' political force with a vote share of less than 1% — the BJP leader said that the party has now become the main Opposition party in the State on its own strength. 'Muslims are killing Muslims' The newly elected BJP president also reached out to minority communities in the State, saying, 'The BJP's fight is not against minorities. We are not against Muslims... We want to provide them with books in their hands instead of tools for migrant workers.' Mr. Bhattacharya accused Ms. Banerjee's government of precipitating a communal divide in the State. In the political violence occurring under the Trinamool Congress regime, 'Muslims are being killed by Muslims', he said. Uniting BJP veterans, newcomers The outgoing BJP president of West Bengal Sukanta Majumdar, was also present at the event, where he and Mr. Adhikari vowed to work with Mr. Bhattacharya. The new BJP president also tried to bring together veterans and new entrants in the party. 'The old-timers in the party must remember that without newcomers, the party can't grow. We can't order people from Kumartuli to create cadres for us. At the same time, the newcomers must never forget that the old guard held the flag high even when defeat was inevitable,' Mr. Bhattacharya said.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Centre to invest ₹2 trillion to transform Jharkhand's infra: Gadkari
Union Minister Nitin Gadkari on Thursday said the Centre is committed to augment Jharkhand's infrastructure, and it would implement projects worth Rs 2 lakh crore in the state. The Union Road Transport and Highways Minister asserted that Jharkhand, which is rich in mineral resources, would see unprecedented growth in the highways sector. "I am committed to bolster Jharkhand's infrastructure. I assure the people of implementing Rs 2 lakh crore-worth national highway projects in the state," he said, while addressing a public meeting. "We have completed Rs 40,000-crore national highway projects in the state. At present, we are implementing highway projects worth Rs 70,000 crore, while projects worth Rs 75,000 crore are in the pipeline," Gadkari said. Strengthening infrastructure was the need of the hour to make India a USD 5-trillion economy in line with Prime Minister Narendra Modi's vision, he said. He said the Rs 36,000-crore Varanasi-Ranchi-Kolkata greenfield corridor will be completed by March 2028, while the Rs 12,800-crore Ranchi-Varanasi economic corridor will be built by January 2028. Besides, the Rs 31,700-crore six-lane Delhi-Kolkata corridor will be completed by June 2026, he said, adding, the Ranchi-Patna four-lane economic corridor, being built at a cost of Rs 8,900 crore, will see completion by December 2029. The Union minister said the Rs 16,500-crore Raipur-Dhanbad four-lane economic corridor will be completed by January 2028. All these projects will significantly reduce the travel time, he said. He also announced a Rs 6,000-crore Ranchi Ring Road project and said that a detailed report on it will be released soon. Gadkari also announced a large number of projects to develop connectivity to religious and tourist places in Jharkhand, including the popular Baba Baidyanath in Deoghar. In two years, the Indian highways will be at par with America's highways in terms of quality, Gadkari asserted. Logistics cost, too, will be reduced to 9 per cent of GDP by December 2025 from 14 per cent, giving a boost to the economy, he said. Gadkari said till elections, there should be politics but after polls, there should be politics of development, hinting at populist measures by Jharkhand's JMM-led government. He also urged the Jharkhand government to address bottlenecks pertaining to land acquisition, clearance from the forest department and other such issues in the state. "We will ensure better connectivity between Jharkhand and other states, including Bihar," he said. Comparing the water crisis in parts of Jharkhand with Maharashtra, Gadkari said there is a small mantra to change the scenario. "We have changed the situation. NHAI built 1,000 ponds free of cost in Maharashtra. We utilised earth excavated from ponds in building roads and it also led to water conservation. I urge the Jharkhand government to issue a similar order for constructing ponds and we will do it free of cost," he said. A strong infrastructure here will boost employment for locals, said Gadkari. He said Jharkhand, which had a national highway network of 2,600 km in 2014, now has a 4,470-km network. Nineteen aspirational districts of the state are linked with the national highway network now, he said. In Garhwa, the minister inaugurated a 23-km four-lane highway from Shankha to Khajoori, built at a cost of Rs 1,130 crore. He also laid the foundation stone of a Rs 1,330-crore project for four-laning of a 32-km stretch of NH-39 from the Chhattisgarh-Jharkhand inter-state boundary to Gumla. Gadkari, who arrived in Ranchi in a special flight, went to Garhwa in a helicopter and addressed a public rally there. He was scheduled to arrive in Ranchi from Garhwa on a helicopter, but it was diverted to Gayaji in Bihar due to inclement weather, an official said. Later, a special aircraft was sent to Gayaji and Gadkari arrived in Ranchi and inaugurated projects worth Rs 3,890 crore. The projects launched in the capital included a Rs 1,900 crore Palma-Gumla four-lane, Rs 825-crore Barhi-Koderma four-lane, Rs 100-crore project for Godda, Rs 20-crore project for Giridih and a Rs 70-crore Barahat-Tulsipur, in addition to the Rs 560-crore elevated corridor in Ranchi. In Jharkhand, the minister inaugurated and laid the foundation stones of multiple national highway projects worth Rs 6,350 crore. Earlier, speaking to PTI, Gadkari said, "Jharkhand Chief Minister Hemant Soren informed me that he will not be able to attend today's function as his father Shibu Soren is unwell and is undergoing treatment in Delhi." Officials said Soren extended his gratitude to Gadkari for the invitation to participate in the event. "It would have been my privilege to be present on this significant occasion. However, due to the ill health of Shri Shibu Soren ji, I am currently in Delhi attending to his medical care, and hence, will not be able to join the programme," an official quoting Soren's written communication to Gadkari said.
