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Cut in Central support hits funds for Karnataka
Karnataka Governor Vajubhai R Vala on Monday said though Karnataka benefited from devolution pool to States that was increased under 14th Finance Commission, drastic cut in terms of State plan and other Central grants, had affected the State’s economy.
Bengaluru
In his address to the joint Session of the Karnataka Legislature which began here, he said due to cut in State plan and other Central grants by the NDA government, further lack of clarity on Central Allocation and revised sharing pattern in many centrally sponsored schemes, the Karnataka government suffered severe setback in implementing developmental schemes.
“This has led to a net reduction in actual transfer of resources to Karnataka. In spite of this, my government has protected the most essential schemes by using State funds,” Vala said. Incidentally Vala had been a long serving Finance Minister of Gujarat State when Prime Minister Narendra Modi was the Chief Minister.
Earlier, Chief Minister Siddaramaiah, who also holds Finance portfolio, had alleged cut in Central schemes by more than half by the NDA government for the current fiscal and such cuts were ‘cruel’ since it affected schemes targeting the poor and children like Mid-day Meal, Integrated Child Development, Rural Housing, Total Sanitation and National Health Mission.
He had alleged that the grants for central schemes have been slashed from Rs 16,626 in 2014-15 to Rs 8,146 crore this year, a loss of Rs 8,480 crore.
Vala said the Congress government in Karnataka was committed to ensure the development of all sections of the society.
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