Siddaramaiah seeks grants for Bengaluru, Kalyana Karnataka and Western Ghats

Bengaluru: Chief Minister Siddaramaiah on Thursday asked the 16th Finance Commission to consider giving grants worth Rs 62,793 crore to Karnataka for the development of Bengaluru and the Kalyana Karnataka region and for disaster management in the Western Ghats.

Siddaramaiah said this during his address to the Arvind Panagariya-led 16th Finance Commission. 

Karnataka faces regional imbalances, especially in the Kalyana Karnataka region, Siddaramaiah said. “The state also faces the challenges of urbanisation. These require greater devolution by the Centre,” he said.  “Bengaluru needs an investment of Rs 55,586 crore over the next five years out of which we request for a grant of Rs 27,793 crore,” Siddaramaiah said. 

“Similarly, for the equitable development of the Kalyana Karnataka region, the state is investing Rs 25,000 crore and requests a matching grant of Rs 25,000 crore over five years from the 16th Finance Commission,” Siddaramaiah said. 

Siddaramaiah also sought Rs 10,000 crore for “effective disaster mitigation, timely relief and rehabilitation measures” in the “highly vulnerable region” of the Western Ghats. 

Karnataka told the 16th Finance Commission that reduced funding from the Union government has placed “severe limitations on the ability of the states to invest in physical and human infrastructure” and that this must be “addressed urgently.” 

Guarantees

Siddaramaiah brought up the Congress’ five flagship guarantee schemes while addressing Panagariya. 

“Despite such a reduction of central transfers, Karnataka has kept its commitment to its flagship schemes such as the five guarantees. We have also not compromised on capital expenditure,” Siddaramaiah said. 

“Recognizing the high multiplier effect of capital expenditure, Karnataka has maintained its capital expenditure at 2% of its GSDP since 2013-14. The state ranks number one in terms of capital expenditure,” Siddaramaiah said. 

‘Pivotal moment’

Siddaramaiah pointed out that recommendations of the 16th Finance Commission would “significantly impact” the states’ ability to achieve “sustainable and inclusive” development. This, at a ‘pivotal moment’ when fiscal relations between the Centre and the states have come into sharp focus, he said.