BENGALURU: Chief Minister Siddaramaiah met Chairman of 16th Finance Commission bringing to the notice of the Commission the growing disparities in per-capita devolution and pointed out to the Commission the significant drop in per capita devolution to Karnataka from 95 per cent to 73 per cent of the national average between the 14th and 15th Finance Commissions. The Chief Minister in a memorandum to the Chairman stated “The drop in per capita devolution is despite increased Gross Domestic Product (GDP) contribution” and exuded confidence in the 16th Financial Commission stating “It is to ensure that growth is not penalized but rewarded.” For sharing funds among States of the country, the Chief Minister suggested to the Commission that each State retain about 60 percent of what it contributes with 40 percent going to less developed States, to ensure both growth and equity. Siddaramaiah highlighted to the 16th Finance Commission a stark imbalance in fiscal returns for every rupee Karnataka contributes to Union taxes, it receives only 15 paise in return. As a result of the reduction in Karnataka’s share under the 15th Finance Commission from 4.713 percent to 3. 647 percent, the State suffered a cumulative loss of over Rs 80,000 crore during the award period. He told the Commission the State’s contribution to India’s economic growth of nearly 8.7 percent of the national GDP with just 5 percent population and ranking second in the country in Goods and Services Tax collections. The Chief Minister sought support for Rs 1.15 lakh crore investment to strengthen Bengaluru’s infrastructure, given its major role in Karnataka’s economy. He stressed the need to bridge regional gaps in Kalyana Karnataka districts and Malnad, which face low incomes and poor infrastructure. He told the Commission growth and equity must co-exist in the country. A strong Karnataka supported by fair fiscal devolution is essential for a strong country.
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