The Opposition JD(S), a constituent of BJP-led NDA, has joined the Karnataka government in urging the 16th Finance Commission to relook into the criteria and weightage in devolution of funds to States. It has said that the State should be adequately rewarded by taking into consideration achievements in health, population control, education, forest and ecology, and tax and fiscal efforts to sustain growth and development.
‘Disaster’ to State
The State government pitched for changes in criteria to add the Gross State Domestic Product (GSDP) and bring amendments to Constitution to bring cess/surcharges under the divisible pool. A delegation of the regional party that met the panel said that the criteria and weightage for horizontal devolution followed currently is a “disaster” to the State that has over the decades done extremely well in areas relating population control, and better outcomes in education and health, including better nutrition outcome.
The current criteria and weightages adopted had led to shortfall in the State’s share of Central taxes, it has said. The GST regime has not seen tax growth on expected lines and stoppage of GST compensation has further aggravated the fiscal and financial position. These have led to shrinking share of devolution of taxes, delay in fulfilling infrastructure commitments and release of funds for disaster relief by the Centre, the memorandum said. The party has also urged the Commission to recommend that 2% of the revenues of the Centre may be shared with States to remove revenue deficits.
On irrigation projects
Citing paucity of resources the State faced to complete projects, the JD(S) said the commission should recommend to the Centre to declare all major irrigation projects across inter-State rivers and drinking water supply project planned to utilise more than 10 tmcft as national projects. Citing loss of 105 tmcft of water storage in major reservoirs due to accumulation of silt, it has sought funds from the Centre to set apart an annual allocation to State for desilting projects.
It also urged the commission to make suitable recommendation to the Centre to accord clearance from Cauvery Water Management Authority (CWMA), Central Water Commission (CWC), and Ministry for Environment and Forests to the DPR of Mekedatu on top priority.
Lingering railway projects
Listing out 19 lingering railway infrastructure projects, the party said that adequate allocation should be made for speedy competition of projects. It pointed out that Karnataka gets fewer trains allocated in the annual railway budget. Rail connectivity and infrastructure in Karnataka is inadequate and way behind Gujarat, West Bengal, and other States. “As many as 80 taluks do not have any sort of rail connectivity as just about 4.2% of lines have been electrified,” it said. The party also sought special assistance to Bengaluru to build infrastructure and provision for drinking water.
