The 15th finance commission deducted Karnataka’s tax share from 4.71 percent to 3.64 percent
Karnataka Government seeks for justice against the financial discrimination of central government towards Karnataka.
Basavaraj Rayareddi, financial advisor to the Chief Minister of Karnataka and Member of Karnataka Legislative Assembly (MLA) said, “The Karnataka Government is demanding for justice to Karnataka against the financial discrimination by central government and the disparity in allocation of grants and devolution by 15th financial commission.”
Established in November 2017, the Fifteenth Finance Commission is an Indian Finance Commission tasked with making recommendations for the devolution of taxes and other fiscal problems over a five-year period.
Rayareddi explained that 14th finance commission in its award period from 2015-16 to 2019-20, fixed Karnataka’s share (horizontal devolution) at 4.71 per cent of the divisible pole of union taxes and duties. 15th Finance Commission in its award period from 2020-21 to 2025-26, has dragged Karnataka’s share down from 4.71 per cent to 3.64 per cent, a decline of over 23 per cent. Due to this reduction, Karnataka has lost 62,098 Crore from 2020-2021 to 2025-26 in devolution.
“The 15th financial commission recommended a special grant of Rs. 6000 crore for Karnataka, Rs. 3000 crore for improvement of water bodies of Bangalore and another Rs.3000 crore for the Peripheral Ring Road. However it was rejected by Nirmala Sitharaman, the financeminister of India. “We demand the finance minister to agree to the recommendations made by the 15th financial commission and release the recommended special grants,” Rayareddi said.
Rayareddi added, “The Karnataka government demanded Rs.1877 crore as drought relief from the central government but not even a single rupee has been released by the Center till now.”
