Latest news with #14thFinanceCommission
New Indian Express
15-06-2025
- Politics
- New Indian Express
Basavaraj Bommai accuses CM Siddaramaiah of making false statements on funds
BENGALURU: Karnatakawill receive over Rs 1 lakh crore more under the 15th Finance Commission compared to the 14th Finance Commission, BJP Member of Parliament from Haveri, Basavaraj Bommai has said. Bommai said that Chief Minister Siddaramaiah is making political statements against the Union Government as he is unable to allocate funds for the guarantee schemes. Prime Minister Narendra Modi increased the Central grant share from 32% to 42%, Bommai said, and added that though Siddaramaiah is aware of it, he deliberately conceals. Accusing Siddaramaiah of repeatedly making false statements, Bommai, a former chief minister, said that during the discussions on the 14th Finance Commission, five Congress ministers were present, but they failed to advocate effectively for the state, and are now trying to cover up their mistakes with such statements. The former chief minister said that the state has already received as much as it got during the 14th Finance Commission period, and funds will continue to come. During the UPA regime, Karnataka got only Rs 700 crore for Railway projects, he said. 'This year, the Centre has allocated Rs 7,700 crore. However, the state government is unable to provide the matching grants,' Bommai said. Caste survey On the proposed caste survey, Bommai said that the authority to conduct a caste survey lies with the Union Government and Chief Minister Siddaramaiah is trying to mislead the backward classes. Bommai said that Siddaramaiah was in a tight spot over the issue, and the high command had to step in to rescue him. On the ongoing wars in West Asia, the BJP MP termed Israel's attack on Iran shocking. The ongoing Russia-Ukraine war is already affecting the world significantly, the MP said, adding that all global leaders must work towards halting wars. On Friday, Chief Minister Siddaramaiah had stated that Karnataka annually contributes Rs 4.5 lakh crore in taxes to the Centre but gets only 15 paise against 1 Rupee in the devolution of taxes and this injustice should not happen in the 16th Finance Commission recommendation.
Hindustan Times
14-06-2025
- Business
- Hindustan Times
Karnataka CM seeks higher share in central tax pool
Karnataka chief minister Siddaramaiah on Friday pushed for a more equitable tax devolution system while urging the 16th Finance Commission to rectify what he described as a persistent imbalance in fiscal transfers from the Centre to states. 'Karnataka's fiscal strength fuels national growth. It is time to ensure that growth is not penalised but rewarded. We urge the commission to adopt a balanced, forward-looking approach to devolution,' Siddaramaiah said during a meeting with commission chairman Arvind Panagariya and members in New Delhi to present Karnataka's views through an additional memorandum. Highlighting Karnataka's contribution to the national economy, the chief minister pointed out that the state accounts for nearly 8.7% of India's GDP, despite representing only 5% of the country's population. It also ranks second in GST collections. 'For every rupee Karnataka contributes to Union taxes, it receives only 15 paise in return,' he pointed out. Citing the reduction in the state's share of tax devolution by the 15th Finance Commission — from 4.713% to 3.647%, the CM said that it resulted in a cumulative loss of over ₹80,000 crore. Karnataka's per capita devolution, he added, has fallen from 95% of the national average during the 14th Finance Commission to just 73% under the 15th, even as the state's GDP contribution rose. The 16th Finance Commission, established in December 2023, is tasked with recommending tax revenue distribution between the central government and states for 2026-31. The commission is currently conducting consultations and must submit its recommendations by October 31, 2025. Siddaramaiah was joined by economic advisor Basavaraja Rayareddy, the chief secretary, and senior officers from the finance department and the chief minister's office. In its main memorandum, Karnataka proposed increasing the states' share in vertical tax devolution to at least 50% and capping cesses and surcharges at 5%. It also recommended that Union non-tax revenues be included in the divisible pool. For horizontal devolution among states, Karnataka argued that high-performing states should retain about 60% of their contribution, with the remaining 40% directed toward less-developed states. The state also advocated reducing the weight assigned to the income-distance criterion — a metric used to determine fiscal capacity gaps — and shifting focus towards measuring each state's economic contribution. 'Equity must be implemented in a time-bound and outcome-oriented manner, without disadvantaging states that demonstrate strong economic performance and sound fiscal management,' Siddaramaiah said. The additional memorandum focused on three key areas — disparities in per capita devolution, flaws in the design of Revenue Deficit Grants, and the unpredictability of State-Specific Grants. The CM questioned the effectiveness of Revenue Deficit Grants, pointing out that 'persistent deficits in beneficiary states' raise doubts about their impact. He called for these grants to be distributed using the horizontal devolution formula instead. He also criticised the current assumptions used in determining these grants. 'Unfortunately, these assessments tend to place welfare policies on a lower pedestal compared to salaries, pensions, and administrative expenses,' he said. Referring to the state's welfare programs, Siddaramaiah said, 'Our government has been guided by Gandhiji's philosophy of Sarvodaya, emphasising welfare for all. These initiatives stimulate local demand and drive inclusive growth.' In place of discretionary grants, Karnataka proposed a formula-based allocation of 0.3% of Gross Union Receipts. However, if special grants are retained, the state reiterated its demand for support for Bengaluru and other critical projects. Seeking backing for ₹1.15 lakh crore in investments to upgrade Bengaluru's infrastructure, the CM said the capital city plays a central role in the state's economy. He also emphasized the need to address the regional imbalances in Kalyana Karnataka and Malnad, which continue to face poor infrastructure and low income levels. Concluding the presentation, Siddaramaiah asserted that equity and growth must go hand in hand. 'A strong Karnataka — supported by fair fiscal devolution — is essential for a strong India,' he told the commission.
Time of India
06-06-2025
- Business
- Time of India
UP performing on many parameters, demand for higher share in central taxes justified: Khanna
1 2 Lucknow: Days after the chairman of 16th Finance Commission Arvind Panagariya said that Uttar Pradesh, like many other states, had demanded increase in state's share from existing 41% to 50%, state finance minister Suresh Khanna said that such a demand has been raised by other states too and it is justified as UP has being doing better on several parameters. The UP govt's thrust before the 16th Finance Commission was on UP's share in central taxes which should be 20.47% against 17.93% it got in 15th Finance Commission, the finance minister told TOI. Sources said that even if UP does not get the demanded share of 20.47%, it should get at least 19.76% of central taxes, which UP got during the 13th Finance Commission between 2010 and 2015. The meeting, which was also attended by Chief Minister Yogi Adityanath, primarily focused on how much money is required by the state and why. Talking to TOI on the issue, Khanna said: "The demand is justified as UP has done better on several parameters. UP has fared well in tax effort, which is one of the criteria of the Finance Commission for allocating money. UP has collected over Rs 2.12 lakh crore in state's own tax collection. UP's own tax collection comprises state GST and VAT which stood over Rs 1.14 lakh crore." On the state's demand to increase UP's share to 20.47% of the central taxes, Khanna said that during the 14th Finance Commission, the tax share stood at 17.95% for UP which came down to 17.93% in 15th Finance Commission. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Khanna said that UP has done better not only in its own tax revenue but also performed better in financial management and discipline with FRBM limit remaining within the permissible limit of 3%. Khanna said since UP did not have its own natural resources, its demands were just and acceptable. He said even under forest index, which is also one of the criteria, the UP govt has planted over 200 crore trees of which over 70% have survived. But the finance commission counts forest covered areas if tree plantation is not done densely. "The demand to keep tree plantation in the forest criteria was also raised before the Finance Commission," Khanna said. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Hindustan Times
03-06-2025
- Business
- Hindustan Times
16th Finance Commission arrives in state today, Uttar Pradesh to pitch for larger share of tax pie
As the 16th Finance Commission begins its visit to the state from Ayodhya on Tuesday, the Uttar Pradesh government's team is working almost round the clock to make a case for a greater share in the 'divisible pool of states' that came down marginally following the 15th Finance Commission's recommendations. The divisible pool refers to the portion of the central government's gross tax revenue that is allocated to states. Though Uttar Pradesh got the largest share among the states, its share in the divisible pool came down marginally from 17.959% to 17.931% (for 2021-2026) as the 15th Finance Commission recommended the share of states to be 41% (against 42% by the 14th Finance Commission) with an adjustment of 1% made to provide for the then newly formed Union Territories of Jammu and Kashmir and Ladakh from resources of the Centre. The 16th Finance Commission led by its chairman Arvind Panagariya will arrive in the state capital on Tuesday evening after visiting Ayodhya earlier in the day. Senior officers are busy giving final touches to the state government's demands to be made to the finance panel for a greater share in central funds. Chief minister Yogi Adityanath on Monday reviewed the presentation to be made by the state government before the finance panel. 'Yes, the state government will demand a greater share in the divisive pool of states with special consideration for Uttar Pradesh for additional funds. Uttar Pradesh is leading on the path of development as our focus has been on bringing about improvement in the law-and-order situation and boosting development. We are working to achieve objectives of zero poverty and make UP a trillion-dollar economy,' minister for finance Suresh Khanna said. Those aware of the development said the state government would demand that the Finance Commission should give greater weight to the population. The state government would make a detailed presentation about the efforts being made by it to mobilise additional resources and improve forest cover. 'We hope the 16th Finance Commission will recommend a greater share to the states and give special consideration to Uttar Pradesh in giving additional funds,' a senior officer of the state government said on condition of anonymity. The 15th Finance Commission introduced demographic performance of states in the need-based six-point criteria recommended for horizontal devolution. The commission gave 15% weight to population, 15% to area, 10% to forest and ecology, 45% to income distance, 12.5% to demographic performance and 2.5% for tax effort. The 14th Finance Commission had given 17.5% weight to the population of 1971 and 10% weight to the population of 2011. It gave 15% weight to area, 7.5% to forest cover and 50% to income distance. Besides going for 'darshan' at the Ram temple in Ayodhya, the finance commission will also pay a visit to some developmental sites, as per the programme. Chief minister Yogi Adityanath will host dinner for the commission on Tuesday evening. On Wednesday, the state government will make a presentation about its development journey and efforts to achieve the trillion-dollar economy objective along with arrangements made for Prayagraj Maha Kumbh 2025 that attracted 66 crore pilgrims. The commission will also meet representatives of Panchayat Raj Institutions, urban local bodies and trade and industry. The commission will meet representatives of political parties and also speak to media persons here on Wednesday. On Thursday, the commission will leave for Varanasi from where the panel will proceed to New Delhi.
Time of India
26-04-2025
- Business
- Time of India
Punjab lags in enforcing Smart Cities Mission; only 87% of projects completed in nearly 10 years
Chandigarh: With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87% of its smart city projects, notably below the national completion rate of 93%. Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions. In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to Rs 4,450 crore, 179 projects worth Rs 3,969 crore were completed. However, 26 projects, with a total value of Rs 481 crore, are still pending. By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91% completion rate. In the hill state, 265 of 291 projects worth Rs 1,552 crore across two smart cities were executed, amounting to Rs 1,206 crore in completed works. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo At the top of the performance chart is Jharkhand with 100% project completion, followed by Tamil Nadu (98%), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97% completion. On the lower end, Telangana ranks last with a 64% completion rate, followed by Manipur (70%), Mizoram (71%), and Arunachal Pradesh (73%). At the national level, nearly 50% of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, Rs 22 crore has been spent per project. The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs). Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage. Chandigarh: With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87% of its smart city projects, notably below the national completion rate of 93%. Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions. In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to Rs 4,450 crore, 179 projects worth Rs 3,969 crore were completed. However, 26 projects, with a total value of Rs 481 crore, are still pending. By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91% completion rate. In the hill state, 265 of 291 projects worth Rs 1,552 crore across two smart cities were executed, amounting to Rs 1,206 crore in completed works. At the top of the performance chart is Jharkhand with 100% project completion, followed by Tamil Nadu (98%), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97% completion. On the lower end, Telangana ranks last with a 64% completion rate, followed by Manipur (70%), Mizoram (71%), and Arunachal Pradesh (73%). At the national level, nearly 50% of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, Rs 22 crore has been spent per project. The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs). Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage.
