Chief Minister Siddaramaiah on Wednesday said the state has sought a special grant of ₹1.15 lakh crore from the Union government to fund the projects in Bengaluru, pitching the need for sustained investments in the country’s tech capital to address infrastructure challenges.
Speaking to reporters after meeting Union Finance Minister Nirmala Sitharaman in Delhi, Siddaramaiah said he has placed the request, arguing that Bengaluru was a global city and the Centre's funding would help improve the city’s civic infrastructure.
Recently, Bengaluru’s failing infrastructure came into the spotlight during heavy downpours, bringing the city to a standstill with many tech parks submerged and homes inundated with floodwaters.
Beyond Bengaluru, the CM also flagged the need for fairer allocations to underdeveloped regions like Kalyana Karnataka and Malenadu to accelerate balanced growth. “Our demands are not for special treatment but to foster competitive and cooperative federalism and strengthen India’s national resource mobilisation,” he said.
This specific demand for grants comes at a time when the Karnataka government has been pushing for an equitable share of central taxes through the 16th Finance Commission. “Karnataka’s share in tax devolution from the Centre dropped from 4.713% under the 14th Finance Commission to 3.647% in the 15th, resulting in an estimated loss of ₹80,000 crore to the state over the award period,” CM Siddaramaiah said in a statement.
He added that the state was also denied special grants of ₹11,495 crore earlier recommended by the Commission.
The CM argued that a major reason for the state’s reduced allocation has been the weightage given to the income-distance criterion, which received 45% weightage under the 15th Finance Commission. The state has now proposed that this weightage be cut by 20% points, with the same being reallocated to ‘fiscal contribution,’ referring to the state’s share in national GDP.
The state has requested the Union government to include these proposals in its formal submission to the 16th Finance Commission.
Speaking to reporters after meeting Union Finance Minister Nirmala Sitharaman in Delhi, Siddaramaiah said he has placed the request, arguing that Bengaluru was a global city and the Centre's funding would help improve the city’s civic infrastructure.
Recently, Bengaluru’s failing infrastructure came into the spotlight during heavy downpours, bringing the city to a standstill with many tech parks submerged and homes inundated with floodwaters.
Beyond Bengaluru, the CM also flagged the need for fairer allocations to underdeveloped regions like Kalyana Karnataka and Malenadu to accelerate balanced growth. “Our demands are not for special treatment but to foster competitive and cooperative federalism and strengthen India’s national resource mobilisation,” he said.
This specific demand for grants comes at a time when the Karnataka government has been pushing for an equitable share of central taxes through the 16th Finance Commission. “Karnataka’s share in tax devolution from the Centre dropped from 4.713% under the 14th Finance Commission to 3.647% in the 15th, resulting in an estimated loss of ₹80,000 crore to the state over the award period,” CM Siddaramaiah said in a statement.
He added that the state was also denied special grants of ₹11,495 crore earlier recommended by the Commission.
The CM argued that a major reason for the state’s reduced allocation has been the weightage given to the income-distance criterion, which received 45% weightage under the 15th Finance Commission. The state has now proposed that this weightage be cut by 20% points, with the same being reallocated to ‘fiscal contribution,’ referring to the state’s share in national GDP.
The state has requested the Union government to include these proposals in its formal submission to the 16th Finance Commission.
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