Bengaluru: Karnataka Chief Minister Siddaramaiah has requested grants worth ₹62,793 crore from the 16th Finance Commission to address the developmental needs of Bengaluru, the Kalyana Karnataka region, and disaster management in the Western Ghats. Speaking on Thursday during his address to the Finance Commission led by Arvind Panagariya, Siddaramaiah underscored the regional imbalances and urbanisation challenges Karnataka faces, particularly in the Kalyana Karnataka region.
Addressing Regional Imbalances
Siddaramaiah highlighted the ongoing disparities in the state’s development, especially in the Kalyana Karnataka region, which has long struggled with socio-economic challenges. He argued that these imbalances necessitate greater financial devolution from the Centre. “The state faces challenges of urbanisation and regional imbalances, which require greater devolution by the Centre,” Siddaramaiah stated.
Bengaluru’s Urban Challenges
With Bengaluru’s rapid urbanisation posing significant challenges, Siddaramaiah emphasised the need for substantial investments to sustain the city’s growth and infrastructure. “Bengaluru needs an investment of ₹55,586 crore over the next five years, of which we request a grant of ₹27,793 crore,” he said.
Development of Kalyana Karnataka
For the equitable development of the Kalyana Karnataka region, Siddaramaiah proposed a matching grant from the 16th Finance Commission to complement the state’s planned investment. “The state is investing ₹25,000 crore in the Kalyana Karnataka region and requests a matching grant of ₹25,000 crore over five years,” he added.
Disaster Management in the Western Ghats
In addressing the vulnerabilities of the Western Ghats, Siddaramaiah sought ₹10,000 crore for effective disaster mitigation, timely relief, and rehabilitation measures. The Western Ghats, a biodiversity hotspot, is prone to landslides and floods, necessitating focused disaster management efforts.
Reduced Central Funding
Siddaramaiah expressed concern over reduced central funding, which has constrained Karnataka’s ability to invest in both physical and human infrastructure. “Reduced funding from the Union government has placed severe limitations on the ability of the states to invest in infrastructure, and this must be addressed urgently,” he asserted.
Commitment to Flagship Schemes
Despite these financial challenges, Siddaramaiah reiterated Karnataka’s commitment to its flagship schemes, particularly the five guarantees introduced by the Congress government. “Despite a reduction in central transfers, Karnataka has kept its commitment to its flagship schemes such as the five guarantees. We have also not compromised on capital expenditure,” he said.
Siddaramaiah noted that Karnataka has consistently maintained its capital expenditure at 2% of its Gross State Domestic Product (GSDP) since 2013-14, ranking first in the country in terms of capital expenditure.
Impact of Finance Commission Recommendations
Siddaramaiah concluded by highlighting the significance of the 16th Finance Commission’s recommendations, which he believes will have a profound impact on the states’ ability to achieve sustainable and inclusive development. “The recommendations of the 16th Finance Commission will significantly impact the states’ ability to achieve sustainable and inclusive development, especially at this pivotal moment when fiscal relations between the Centre and the states have come into sharp focus,” he remarked.
The appeal to the Finance Commission underscores Karnataka’s ongoing efforts to secure the necessary resources to address its developmental challenges while maintaining its commitment to key welfare initiatives.