Fri Dec 20 18:37:13 UTC 2024: ## Karnataka Seeks Increased Central Funding in Pre-Budget Meeting

**Bengaluru, December 21, 2024** – Karnataka’s Revenue Minister, Krishna Byre Gowda, presented a pre-Budget 2025-26 proposal to Union Finance Minister Nirmala Sitharaman, highlighting the state’s need for increased central funding across various sectors. The meeting focused on addressing revenue shortfalls, inadequate central contributions to social welfare schemes, and securing approvals for major infrastructure projects.

Gowda emphasized the declining tax devolution to Karnataka due to the rising share of cess and surcharge in gross tax revenue. He urged the inclusion of cess and surcharge in the divisible pool for equitable revenue sharing and proposed amending the GST Act to absorb cess into SGST, enabling states to better manage revenue deficits.

The Minister also highlighted the delay in receiving 15th Finance Commission grants, amounting to ₹6,000 crore in state-specific grants, ₹5,495 crore in special grants, and ₹3,300 crore to cover shortfalls for urban local bodies, panchayats, health, and disaster relief funds. He stressed the need for immediate release of these funds.

Significant concerns were raised regarding inadequate central contributions to social security pensions. While Karnataka spent ₹10,554 crore in FY 2023-24, the Centre contributed only ₹471 crore (4%). Gowda urged expanded coverage and a revision of central contributions. Underpayment of anganwadi workers, ASHA workers, and limited coverage under Ayushman Bharat were also flagged.

The state also sought increased central funding for housing schemes (PMAY), requesting a hike from ₹1.5 lakh to ₹5 lakh per beneficiary under PMAY (Urban) and from ₹72,000 to ₹3 lakh under PMAY (Grameen). Further, Karnataka requested additional railway lines, expedited projects, and Central support for infrastructure projects, including road networks, new ring roads, and national highway upgrades. A comprehensive scheme for urban infrastructure in cities like Bengaluru, Mysuru, and Hubballi was also proposed.

Finally, the state requested central support for major irrigation projects including the Upper Bhadra, Upper Krishna, and Mekedatu projects, along with the Kalasa and Bandura Nala Diversion Project. Additional funds were also sought for the Kalyana Karnataka region and the ecologically sensitive Western Ghats.

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