K’taka left high and dry, slight boost in tax devolution

NT Correspondent

Bengaluru: Disappointment was expressed in many quarters in Karnataka over the Interim Budget as expectations were left unfulfilled, despite the silver lining of a slightly higher devolution in taxes to the state.

The ruling Congress noted that Karnataka’s demands such Rs 5,300 crore promised for the Upper Bhadra project, nod for the All India Institute of Medical Sciences (AIIMS) branch in Raichur and drought compensation allocation for the state remained unfulfilled.

Chief Minister Siddaramaiah said that the Centre had not released funds for the Peripheral Ring Road in Bengaluru either.

It was also pointed out that the interim report of the 15th finance commission recommended that Rs 5,495 crore be provided to Karnataka in a special assistance package.

However, the recommendation was removed from the final report and as a result, Karnataka is yet to get an “adequate tax reward”.

On the other hand, the Centre would be devolving Rs 44,485.49 crore to Karnataka for the 2024-25 Financial Year, which is Rs 3,002.49 crore higher than the Finance Department’s estimation of Rs 41,483 crores.