Finance Minister Nirmala Sitharaman Disputes Allegations of Fiscal Bias Against Karnataka
Finance Minister Nirmala Sitharaman Disputes Allegations of Fiscal Bias Against Karnataka
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Bangalore: Union Finance Minister Nirmala Sitharaman pushed back against allegations of fiscal bias against Congress-ruled Karnataka, emphasizing that every due penny to the state is accounted for and released on time. Speaking at an informal interaction organized by the Thinkers Forum in Bengaluru, Sitharaman debunked claims that a special grant of Rs 5,495 crore was not released for Karnataka, asserting that the Finance Commission's final report did not recommend any such grants.

Highlighting central government schemes benefiting Karnataka, Sitharaman noted that under the PM Garib Kalyan Anna Yojana, 80 crore people nationwide, including 30.5 lakh in urban Bengaluru, receive free rations monthly. She also mentioned the Mudra scheme, which allocated Rs 30,490 crores to urban Bengaluru, benefiting 38.25 lakh beneficiaries, and 'Stand-up India', which distributed Rs 467 crores in Bengaluru Urban, benefiting 4,429 registered beneficiaries. Additionally, she cited PM Swanidhi Yojana and PM Jeevan Jyoti Beema Yojana, enrolling 1.25 lakh street vendors and 30 lakh beneficiaries, respectively, in urban Bengaluru.

Regarding GST, Sitharaman stated that Karnataka received its full share of GST mop-up, amounting to Rs 1.06 crore between 2017 and 2022, with no outstanding GST compensation as of March 2024. Addressing growth projections, she asserted that GST has benefited Karnataka, despite skepticism from some quarters.

Meanwhile, Karnataka Chief Minister Siddaramaiah announced that the state filed a petition in the Supreme Court urging the Centre to release NDRF funds promptly amid drought-like conditions. Earlier, Congress MP DK Suresh expressed frustration over alleged bias in budgetary allocations for South Indian states, suggesting that continued neglect could lead to calls for separate nationhood.

The BJP criticized Suresh's statement, while the Congress distanced itself from it, indicating growing tensions over fiscal issues between the Centre and Congress-ruled Karnataka.

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