Finance Commission open to revising Karnataka's tax devolution criteria
3 months, 3 weeks ago

Finance Commission open to revising Karnataka's tax devolution criteria

New Indian Express  

BENGALURU: The 16th Finance Commission on Thursday said that it is open to considering the Karnataka government’s suggestion on rejudging the criterion with regard to devolution of taxes to the states, but the final decision is “far away”. Commission chairman Dr Arvind Panagariya said Karnataka has submitted a proposal stating that the 45% weightage given to the distance of per capita income of a state, assigned by the 15th Finance Commission, should be reduced to 25%. He ruled out the idea of excluding Bengaluru’s Gross State Domestic Product while calculating the state’s per capita income, which is a criterion to estimate the tax devolution as the commission has no estimates at the district or city level in any case that can be practically done. On Siddaramaiah’s appeal to the 16th Finance Commission to look into Rs 79,770 crore losses incurred by the state during the 15th Finance Commission, Dr Panagariya, however, clarified that no new commission will award compensation for the past happenings.

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History of this topic

5 states seek larger share from 16th Finance Commission
3 months, 1 week ago

5 states seek larger share from 16th Finance Commission

Hindustan Times  

Kerala chief minister Pinarayi Vijayan said on Thursday that the 16th Finance Commission should factor in the rising trend in surcharges and cesses levied by the Union government and suggested that states should receive 50% from tax devolution – higher than the 41% recommended by the 15th Finance Commission. Vijayan’s comments came while inaugurating a conclave of finance ministers from …

16th Finance Commission members to visit Karnataka; govt. to seek a greater share in devolution of funds to correct ‘injustice’
4 months, 1 week ago

16th Finance Commission members to visit Karnataka; govt. to seek a greater share in devolution of funds to correct ‘injustice’

The Hindu  

As the Chairman and members of the 16th Finance Commission are expected to visit Karnataka this month-end, Chief Minister Siddaramaiah on Friday held a preliminary discussion with officials of the State Finance Department and Chief Minister’s economic adviser Basavaraj Rayaraddi, MLA, to work out a plan to seek more funds and correct the “injustice” done to the State in the …

What is on the agenda for the 16th Finance Commission? | Explained
5 months, 3 weeks ago

What is on the agenda for the 16th Finance Commission? | Explained

The Hindu  

The story so far: The 16th Finance Commission has begun its work, established under Article 280 of the Indian Constitution, primarily focusing on the devolution of the consolidated fund. The National Commission on Urbanisation in the mid-80s described cities as “engines of growth.” Although this view is somewhat narrow, the reality is that cities contribute around 66% of India’s GDP …

Union Minister Pralhad Joshi Says Karnataka Got More From NDA Then UPA
10 months, 1 week ago

Union Minister Pralhad Joshi Says Karnataka Got More From NDA Then UPA

Deccan Chronicle  

Bengaluru: In response to the ruling Congress government accusations of “injustice” in tax devolution and in release of grants to Karnataka by the Bharatiya Janata Party led Central Government, Union Minister for Parliamentary Affairs Pralhad Joshi on Tuesday furnished details on contributions of Central Government to Karnataka under Prime Minister Narendra Modi from 2014 to till date and stated that …

Inside the Centre vs states battle over funds
10 months, 2 weeks ago

Inside the Centre vs states battle over funds

Hindustan Times  

Karnataka protested against the Centre on Wednesday, claiming it was not getting its fair share of taxes, which crimps its ability to do good for the state, and Kerala and Tamil Nadu have similar protests lined up in Delhi in the coming days, as the fractures in India’s fiscal federalist framework become more marked. Of the shortfall of ₹1.65 lakh …

No discrimination in tax sharing with States: FM Nirmala Sitharaman
10 months, 2 weeks ago

No discrimination in tax sharing with States: FM Nirmala Sitharaman

The Hindu  

Union Finance Minister Nirmala Sitharaman on Wednesday sought to dismiss allegations that the Centre was not giving money to the States and termed the Karnataka government’s charges about inadequate tax devolutions and discrimination in sharing Central taxes “patently wrong and mischievous”. Noting that even Tamil Nadu had voiced concerns, the Minister assured the House that the government had followed the …

‘Is Finance Commission merely facade under BJP’: Karnataka CM Siddaramaiah
10 months, 2 weeks ago

‘Is Finance Commission merely facade under BJP’: Karnataka CM Siddaramaiah

Hindustan Times  

Karnataka Chief Minister Siddaramaiah has hit out at the Central government over the release of funds for the state, saying that the dwindling grants-in-aid and the glaring absence of budgeted funds raise the question of whether the autonomy of the Finance Commission is merely a 'facade' under the BJP. Siddaramaiah further said that under the 14th Finance Commission, Karnataka received …

Work together to address southern states’ tax concerns
10 months, 2 weeks ago

Work together to address southern states’ tax concerns

New Indian Express  

When Karnataka Chief Minister Siddaramaiah leads the ‘Chalo Delhi’ protest at Jantar Mantar in New Delhi today to highlight the “injustice” meted out to the southern states over their share of taxes, he hopes to transform it into a ‘South Tax Movement’. On this, Siddaramaiah has the support of the chief ministers of Kerala, Telangana and Tamil Nadu, who have …

K'taka lost ₹1.87 lakh crore during 15th Finance Commission: CM Siddaramaiah
10 months, 2 weeks ago

K'taka lost ₹1.87 lakh crore during 15th Finance Commission: CM Siddaramaiah

Hindustan Times  

Stepping up the attack on the NDA government over the issue of tax devolution, Karnataka Chief Minister Siddaramaiah on Monday said the state has incurred a total loss of ₹1.87 lakh crore during five years under the 15th finance commission due to declining Central grants and urged that they be set right. Pointing out at the federal structure of the …

‘Karnataka faces loss of ₹45K cr over reduced tax devolution’: CM Siddaramaiah
10 months, 2 weeks ago

‘Karnataka faces loss of ₹45K cr over reduced tax devolution’: CM Siddaramaiah

Hindustan Times  

Karnataka Chief Minister Siddaramaiah on Sunday alleged “injustice” to the southern state by the Central leadership over a reduction in tax devolution, which he claimed has given way to a loss of more than ₹45,000 crore to the state in the last four years. In this light, CM Siddaramaiah said the taxes paid by the people of Karnataka were not …

Karnataka CM Siddaramaiah writes to Nirmala Sitharaman seeking release of special grants
1 year, 4 months ago

Karnataka CM Siddaramaiah writes to Nirmala Sitharaman seeking release of special grants

India TV News  

Karnataka Chief Minister Siddaramaiah on Monday urged Union Finance Minister Nirmala Sitharaman to release special grants and State-specific grants recommended by the 15th Finance Commission. In a letter to Finance Minister, Siddaramaiah said, "The 15th Finance Commission has reduced Karnataka’s share in tax devolution to 3.647 per cent of the divisible pool for the term 2020-21 to 2025-26 from 4.71 …

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