By Karnataka Chief Minister Siddaramaiah has formally requested the 16th Finance Commission to provide a substantial allocation of ₹27,793 crore for Bengaluru’s development and additional funds for the Kalyana Karnataka region. This request addresses a significant financial shortfall resulting from reduced tax devolution under the 15th Finance Commission’s recommendations.
Financial Shortfall Overview:
The Karnataka government has reported a financial shortfall of ₹79,770 crore due to decreased tax devolution from the 15th Finance Commission. This deficit has severely impacted the state’s budgetary resources, constraining its ability to fund critical infrastructure and development projects. Siddaramaiah’s request to the 16th Finance Commission aims to bridge this financial gap and support essential growth initiatives.
Grant Request for Bengaluru:
The memorandum submitted by Siddaramaiah includes a proposal for a special grant of ₹27,793 crore specifically for Bengaluru. As a major economic and technological hub, Bengaluru faces numerous challenges, including the need for upgraded infrastructure, improved public services, and enhanced urban planning. The requested grant is intended to address these issues and support the city’s ongoing development.
Additional Funding for Kalyana Karnataka:
Alongside the grant for Bengaluru, the Karnataka government is seeking increased funding for Kalyana Karnataka. This region, known for its developmental challenges, requires additional financial support to improve infrastructure, healthcare, and education. The requested funds are aimed at addressing these disparities and promoting balanced development across the state.
Visit by Finance Commission Chairman:
Finance Commission Chairman Dr. Arvind Panagariya’s recent visit to Karnataka was a key opportunity for state officials to present their financial needs directly. The visit highlighted the urgency of Karnataka’s requests and provided a platform for discussions on potential solutions. Dr. Panagariya’s evaluation of these demands will play a crucial role in determining the state’s future financial support.
Impact on State Development:
Approval of the proposed grants could significantly enhance Karnataka’s development strategy. The special grant for Bengaluru would enable critical infrastructure improvements, while increased support for Kalyana Karnataka would help reduce regional development gaps. These measures are expected to drive comprehensive and equitable growth throughout the state.
Chief Minister Siddaramaiah’s request to the 16th Finance Commission underscores Karnataka’s urgent need for financial assistance to address recent challenges and support balanced development. By seeking targeted grants for Bengaluru and Kalyana Karnataka, the state aims to improve infrastructure and address regional inequalities. The Finance Commission’s response will be pivotal in shaping Karnataka’s developmental trajectory.
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