Union Finance Minister Nirmala Sitharaman on Sunday reiterated that the Centre has cleared all dues to Karnataka and that tax devolution has increased from 2014 to 2024 by 258 per cent, which is 3.5 times more compared to the 10 years of the UPA. "Every penny by the Central government that is due to Karnataka is given and given on time to the state government," she said.
"Tax devolution has increased from 2014 to 2024 by 258%, which is 3.5 times more compared to the 10 years of the UPA. Grants to the states have increased by 273%, which is 3.7 times what was given by the UPA government. Between 2004-2014, the money given per year to Karnataka was Rs 81,795 crores in the form of tax devolution. Between 2014-2024, tax devolution paid to the state is nearly Rs 2.93 lakh crores," the finance minister added.
Sitharaman's statement comes just a day after the Karnataka government filed a petition in the Supreme Court against the central government over the delay in disbursal of drought relief funds to the state. The Centre has not released the funds even five months after a ministerial team submitted its report on the drought condition of the state, the state government alleged on Saturday.
"Today, we have filed a writ petition under Article 32 with the Supreme Court against the Centre, seeking the release of the National Disaster Response Fund (NDRF)," said Congress Chief Minister Siddarmaiah.
The chief minister said the state, which is reeling from severe drought in the past few months, is entitled to receive relief funds from the Centre as per the Disaster Management Act of 2005. "When a drought occurs, and is severe, this law is in place so that the states can obtain relief. There is SDRF and NDRF. Under the 15th Finance Commission, it has been decided how much each state gets. 75 per cent is from the Centre, and 25 percent is from the state. It is the duty of the Centre and the state to respond to the troubles of the farmers," he added.
The Congress government in Karnataka has accused the Centre of discrimination, and stopping funds due to the state. In February, Siddaramaiah said the southern state received 4.71 per cent of the tax share under the 14th Finance Commission, which was reduced to 3.64 per cent by the 15th Finance Commission (2020-2025).
"This 1.07% decrease resulted in an estimated loss of Rs 62,098 crore for Karnataka over five years. To compensate, the 15th Finance Commission recommended a special grant of Rs 5,495 crore for Karnataka in the interim budget, which Finance Minister Nirmala Sitharaman subsequently declined," he alleged.
Siddarammaih also accused the Centre of not releasing the recommended Rs 3,000 crore each for lake and water body development and peripheral ring road projects. "Altogether, Karnataka missed out on a total of Rs 73,593 crore."
The chief minister also said that the Centre had previously announced a grant of Rs 5,300 crore for the Upper Bhadra Project, which was included as part of the irrigation project grants in Basavaraj Bommai's Budget. This project is crucial, he said, as it provides water to an extensive area of 2.5 lakh hectares. "However, despite these announcements, we have not received any funding in this regard, and I strongly urge for its release without further delay."