Rejecting claims by the Karnataka authorities of discrimination in sharing central taxes, Union Finance Minister Nirmala Sitharaman mentioned the allegations are obviously flawed and mischievous. The Minister, whereas addressing a convention in Parliament premises mentioned, “There are factual errors, false monetary claims, misleading statements, and selective mention of certain losses allegedly suffered without mentioning the gains that have accrued to the state (Karnataka) in the 15th Finance Commission period.”
The Minister was replying to the Karnataka government’s claim of big losses suffered by the state because of the fifteenth Finance Commission’s suggestion. Currently, devolution of states’ shares is completed as per suggestions of the fifteenth Finance Commission, mentioned the Minister, including, “The 15th Finance Commission submitted its final report in October 2020, and the government laid the Explanatory Memorandum as to the Action Taken on the Recommendations of the Commission in February 2021.”
“The award period of the Finance Commission is from 2020-21 to 2025-26,” she mentioned.
As per the Minister, the share of every state in sharable central revenues fluctuates from Commission to Commission, and every Commission makes suggestions in its knowledge contemplating all of the elements affecting numerous states and the Centre and with huge consultations with state governments.
Karnataka obtained over Rs 151 cr as tax devolution:
During the 14th Finance Commission’s five-year award interval (2015-16 to 2019-20), the Minister clarified, that Karnataka obtained Rs 1,51,309 crore as tax devolution.
“However, in the first four years of the current 15th Financial Commission period, Karnataka would have already received Rs 1,29,854 crore by March 2024. The Government of India has projected a further release of Rs 44,485 crore in the Interim Budget for the Financial Year 2024-25, taking the total to Rs 1,74,339 crore in five years. This is higher than the 14th Financial Commission period despite the precipitous drop in revenue during the COVID-19 period,” mentioned the Finance Minister.
In brief, the Minister mentioned that regardless of the distinctive circumstances arising from the pandemic, which depressed central revenues, the Government of Karnataka shall be getting considerably extra as devolution in the course of the first 5 years of the fifteenth Financial Commission interval than in the 14th Financial Commission interval.
To inflate its false claim of losses, Sitharaman mentioned the Government of Karnataka has even included shortfalls for the following two monetary years specifically 2024-25 and 2025-26.”Its (Karnataka government’s) figures of actual tax revenue percentage shared with states have been presented without any calculation details and appear to be imagined. Even according to these baseless figures asserted by the government of Karnataka, the actual tax devolution percentage has increased since 2015-16, contradicting the claim of mistreatment by the Centre,” added the Minister.
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