Finance Minister Slams Karnataka Govt For Rising Inflation & Borrowings

Union Finance Minister Nirmala Sitharaman has strongly hit out at the opposition and the Karnataka State Government for spreading falsehood on tax devolution to the state by the Central Government. Addressing media persons in Bengaluru yesterday, the Finance Minister released data comparing the allocations made to Karnataka during UPA and NDA periods. 

She said that the state received just 81,791 crore rupees between 2004 and 2014 which increased enormously to 2,95,818 crore rupees between 2014 and 2024 during the NDA period. The annual allocation also increased from 8179 crore rupees during UPA to 45,485 crore rupees this year. Apart from this, the Grant in aid increased from 60,779 crore rupees of UPA period to 2,36,955 crore rupees during the NDA Government. 

 

Karnataka received 10,041 crore rupees for infrastructure, 200 crore rupees under PM Mitra textile park scheme in Kalburgi and 6428 crore rupees under Smart city programme. The state also has received the highest allocation of 7559 crore rupees during this Railways budget. This is higher than 835 crore rupees that the state received for the whole of ten years during the UPA rule. There are 31 railway projects going on in Karnataka covering 3840 kms of track doubling worth



47,016 crore rupees. Bengaluru has benefitted from the Union budget through PM Awas Yojana, incentives to MSMEs, R&D loan schemes, employment generating incentives and apprenticeship schemes.

Taking on the Karnataka State Government for its economic policies, the Finance minister pointed out that the state which boasted of Revenue surplus during the last two years has now become revenue deficit economy. The open market borrowings have alarmingly increased to over a lakh crore rupees. The inflation that stood below the national average of 5.39 percent in the last two years has gone up to 6.1 percent surpassing the national average of 5.4 percent. She said is due to an increase in the prices of petrol prices and milk, increase in property guidance value, stamp duty, vehicle registration fee and lifetime tax on vehicles. She also said that the capital expenditure has been reduced in the state which will have its impact on employment generation. 

 

The Finance Minister Nirmala Sitharaman also said the SC and ST funds were siphoned off in the state and the minister had to resign. She added that law and order has worsened in Karnataka which will discourage investors from coming to the state.