Ten-year Narendra Modi era has transformed India from despair to optimism: Finance Minister

Tax devolution: UPA Vs NDA

Tax devolution to Karnataka surged by 258 percent from 2014 to 2024 compared to the 10-year tenure of UPA government. Grants to the States rose by 273 percent during the NDA period. Between 2004 and 2014, Karnataka received Rs. 81,795 crore annually in tax devolution. Between 2014 and 2024, it received Rs. 2.93 lakh crore.

Mysore/Mysuru: In response to the allegations of fiscal bias against Congress-governed Karnataka and claims of inadequate provision of funds, Union Finance Minister Nirmala Sitharaman delivered a robust defence last evening in the city, asserting that every due penny to the State has been meticulously accounted for and disbursed punctually.

Addressing an informal gathering organised by the Thinkers Forum, Mysuru, at the Convocation Hall of the Karnataka State Open University (KSOU), Nirmala Sitharaman refuted the assertion that a special grant of Rs. 5,495 crore had not been released to Karnataka, labelling such claims as entirely false. She clarified that the Finance Commission’s final report did not recommend any such special grants.

Without directly referring to the Congress government led by Chief Minister Siddaramaiah, Nirmala Sitharaman stated her intention to provide a Kannada version of the Finance Commission’s recommendations.

Misleading interpretations

“Inform me whether the claimed amount by the Karnataka government aligns with the recommendations outlined in the final report,” she urged. “If it isn’t included in the final report, then how can I allocate it?” she questioned, emphasising that misleading interpretations were being circulated to create  confusion among the public.

She said that the release of funds is contingent upon the receipt of the necessary audited certificates by the Central government. She assured that the funds would be released promptly upon submission of these certificates.

Highlighting the financial support provided to Karnataka, Nirmala Sitharaman underscored that tax devolution to the State had surged by 258 percent from 2014 to 2024, marking a significant increase compared to the 10-year tenure of the UPA government. Grants to the States had similarly risen by 273 percent during the NDA period, indicating a substantial boost compared to the allocations made by the previous UPA government.

Illustrating the substantial increase in financial assistance, Sitharaman outlined that between 2004 and 2014, Karnataka received Rs. 81,795 crore annually in tax devolution. In contrast, tax devolution to the state between 2014 and 2024 amounted to nearly Rs. 2.93 lakh crore, demonstrating a significant upsurge in support under the current administration.

Centre wrongly accused

Nirmala Sitharaman’s statement came a day after Karnataka filed a writ petition in the Supreme Court requesting a direction to the Centre to immediately release grants under the National Disaster Response Fund (NDRF) to the State, which is reeling under acute drought.

“I want to emphasise in detail that every penny owed to Karnataka, every paisa owed to Karnataka, has been disbursed, and disbursed promptly. Nobody is boasting about the amount we’ve provided, but it’s disheartening to be wrongly accused of withholding funds from Karnataka. I urge you to examine the facts, scrutinise the dates of fund disbursement and present specific and accurate information. This way, I can respond appropriately,” she asserted.

“When we have consistently delivered funds on time, and sometimes even ahead of schedule, spreading misinformation that money isn’t reaching the State is entirely irresponsible,” she added sternly.

From despair to optimism

The 10-year Narendra Modi era has transformed India from despair to optimism, the Finance Minister said. She attributed the prior despair to what she termed as ‘policy paralysis’ during the preceding UPA decade under the former government.

She dismissed Opposition assertions that earlier administrations had set the stage for economic growth, emphasising that policy initiatives alone are insufficient without effective government implementation.

Highlighting the BJP-led Government’s corruption-free tenure over the past decade, Nirmala Sitharaman underscored the administration’s vision and commitment to prioritising the               interests of the people.