Mysore/Mysuru: Finance Minister Nirmala Sitharaman highlighted that in the aftermath of the COVID-19 pandemic, Prime Minister Modi instructed the Finance Ministry to provide interest-free loans to States for 50 years, aimed at bolstering infrastructure development and supporting ongoing projects.

“No Finance Commission had recommended, but the Centre decided to give all the States interest-free loans for 50 years… It might probably even get written off. What was the share of Karnataka in that? Rs. 7,130 crore since 2020-21,” the Finance Minister disclosed.

“I ask whether the State Government acknowledged that Karnataka received the amount, which was not part of the recommendations of the Finance Commission,” she asked.

Karnataka’s GST share

Nirmala Sitharaman further noted that Karnataka had received its complete share of GST revenue, totalling Rs. 1.06 lakh crore for the period spanning from 2017 to 2022. She defended the growth forecasts, underscoring the positive influence of GST on  State revenues.

In a pointed remark directed at the State Government, Nirmala Sitharaman remarked, “The growth rate before GST stood at a mere 11.68 percent. Now, with it climbing to 15 percent, they refuse to acknowledge it and claim the figures are exaggerated.”

She addressed the State Government, stating, “I want to emphasise that GST is proving advantageous for you. It is gradually augmenting your tax revenues.”