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Nirmala Sitharaman says Karnataka and Bengaluru are set to benefit under many schemes announced in Budget
Union Finance Minister Nirmala Sitharaman addressing a press conference in Bengaluru on Sunday.
| Photo Credit: K. MURALI KUMAR
Following criticism of the Union Budget by Chief Minister Siddaramaiah, Union Finance Minister Nirmala Sitharaman on Sunday defended the Centre’s financial allocation to Karnataka and said that many of the large projects announced in the Budget would bring benefits to the State.
She told presspersons here that the venture capital fund for space start-ups would help those associated with ISRO in Bengaluru while the abolition of the angel tax would also help start-ups here. “Karnataka will benefit from high-value agri tech, and the University of Agricultural Sciences in Bengaluru and Raichur will benefit from funding for research. Climate-resilient seeds would be provided for north Karnataka which is affected by the vagaries of nature. Bengaluru will benefit from the cluster-based vegetable production scheme.” She also listed out many other large schemes that could bring benefits to Bengaluru and Karnataka.
While Mr. Siddaramaiah had listed out Karnataka’s expectations from the Budget that were not met, Ms. Sitharaman gave details of the tax devolution, grants in aid, and other financial assistance to the State. She, however, did not delve into the question of Karnataka not receiving an AIIMS, and funds for the Upper Bhadra project and Bengaluru Peripheral Ring Road project, among others, that have been raised by the Congress government. To a question on these issues, she said, “I have read out a lot of things that I have given for Karnataka.” On the allegation that contents of the Congress manifesto being copied in the Budget, she said, “The Congress can never come up with anything. Their way is tokenism. The apprenticeship programme is a well-thought-out one. How can we copy a poorly made scheme from them.”
Tax devolution and grants
Stating that a lot of misinformation on tax devolution and grants in aid, among others, was being spread in Karnataka by the State government, she said, “It is completely false. While Karnataka received ₹81,791 crore in tax devolution between 2004 and 2014 when the UPA was in power, the State received ₹2,36,955 crore between 2014 and 2024 under the NDA government. In grants in aid, the State received ₹60,779 crore during the UPA regime while it received ₹2,36,955 crore during the NDA government.” From 2020-2021 till now, including the allocation in the 2024-2025 Budget, Karnataka will receive ₹10,041 crore 50-year interest-free loan, she added.
Other things that she listed include funding in the Railways and highways sectors. “Allocation for the Railways during the 2009-2014 UPA rule was ₹835 crore. However, the State will receive ₹7,559 crore for the Railways in the 2024-2025 Budget. The ongoing railway projects are worth ₹47,016 crore and more than ₹1 lakh crore worth of highway projects are being implemented in the State.”
On Mr. Siddaramaiah not attending the NITI Aayog meeting along with many other Chief Ministers, she said, “It is sad that they did not attend. They always say that their voice is not heard. All Opposition leaders, I wish, would have come and voiced their opinion. This a forum to come and speak your voice. (West Bengal Chief Minister) Mamata Banerjee came and she raised her voice. Of course, afterwards she said something different.”
CM has to take responsibility for ST corporation scam: FM
On the Chief Minister’s demand for accountability of the Union Finance Minister in the Karnataka Maharshi Valmiki ST Development Corporation’s irregularities, she said, “He can say. He is quite used to talking like this. His hallmark is more than good governance; he speaks like this.” She said the State government should have taken action if bank officials had taken the money. “You should punish them if they have done wrong. You should have arrested the bank officials if they had swindled the government’s money. Then you have the right to blame the Centre and seek Nirmala Sitharaman’s resignation. I have no problem if you take [arrest] bank officials if they have done wrong.” She also said the Chief Minister has to take responsibility for the scam.
On the steps taken by the Centre, she said, “Action has been taken against conniving officials in the bank and I want them to be punished. Lawful action will be taken against them and no protection will be offered to them.” By accepting the scam, the Chief Minister has conceded on the floor of the House, she said, adding that the government had denied it initially.
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