Ahead of Union Budget, Karnataka seeks release of dues

Ahead of the Union Budget, Chief Minister Siddaramaiah has urged the Centre to release its dues and has referred to the economic conditions in the State owing to GST rate rationalization, increased social commitment, change in weather condition, and increasing urbanisation. The rate of growth of committed expenditure is faster than the State’s revenue receipts, he has pointed out.

Claiming that the rate of GST collection had declined to 5% from 12% after rationalisation of GST rates, he said in a letter that the State estimated a revenue loss of ₹5,000 crore this year and ₹9,000 crore annually from the next financial year. While the Centre, to offset the losses, has imposed cess on pan masala and excise duty on tobacco products, States do not have any such revenue raising opportunities. The State has requested the Central revenue stream to States on the lines of GST compensation, and urged the Centre to share the cess on pan masala and excise duty on tobacco equally with States. He also sought ₹5,300 crore for the Upper Bhadra project that has been announced by the Centre earlier.

Urging the Centre to release its remaining share in Jal Jeevan Mission, he pointed out that the Centre has so far released only ₹11,786 crore as against the State’s release of ₹24,598 crore. To ensure continuity of the scheme, the State’s release is more than ₹13,004 crore.

Mr. Siddaramaiah said that the enactment of the VB-G RAM G Act by repealing the MGNREGA will reduce the man days with respect to employment and Karnataka may have to spend an additional ₹2,000 crore to continue providing 13 crore man days to ensure livelihood. “There is no scope to provide this additional sum in the budgetary allocation. Also, the new legislation has increased the State’s share in the rural employment guarantee scheme. The scheme should be reviewed to ensure demand driven employment and ensure continuity in Centre’s financial aid,” he said.

Seeking an additional ₹796 crore under PM ASHA, he said that owing to low minimum support price, procurement has not been effective. “Karnataka is proposing to bring eight crops, including mango, jowar, soyabean, chillies, tomato and onions under PDPS, I am seeking the additional funding in the next financial year.”

Pointing out that the honorarium of anganwadi workers and ASHAs had not been revised by the Centre for many years now, he has urged the Centre to revise their monthly honorarium to ₹8,000 per month, and to increase the honorarium of midday meal workers and assistants to ₹5,000 per month.

The Chief Minister also urged the Centre to release the dues from the 15th Finance Commission that includes special assistance of ₹5,495 crore, State-specific Central assistance of ₹6,000 crore and ₹4,044 crore shortfall in the 15th Finance Commission recommendations, and urged the Centre to release ₹5,000 crore as special assistance to Kalyana Karnataka.