FC, not Centre, decides state funds: Pralhad Joshi clarifies

Hubballi, Oct 12 (UNI) Union Minister Pralhad Joshi has clarified that it is the Finance Commission and not the central government, that decides the allocation of funds to states.

Addressing the recent criticism from Congress leaders accusing the Centre of tax injustice towards Karnataka, Joshi defended the NDA government’s record, claiming it has provided significantly more funding to the state compared to the UPA era.

Speaking to reporters here on Saturday, he noted that the NDA government had more than doubled Karnataka’s financial aid compared to the previous UPA government. The Minister accused the Congress government of mismanaging state finances and deflecting blame onto the Centre.

“The Finance Commission is responsible for determining allocations, and the Centre provides funds based on its recommendations,” Joshi said.

He pointed out that during Siddaramaiah’s tenure as Chief Minister in 2016-17, the Finance Commission had already set the funding. “If Karnataka felt it was being shortchanged, it should have made its case to the Commission back then,” he retorted, criticising the Congress for raising issues only after the fact.

The Minister also highlighted that even the current Karnataka Chief Minister had acknowledged mistakes made within his administration. He urged the state to make a strong case before the newly reconstituted Finance Commission.

Comparing funding between the UPA and NDA periods, Joshi stated that Karnataka had received Rs 49,000 crore in grants during the UPA era, while the NDA government had provided Rs 3 lakh crore. Similarly, in tax allocations, the NDA had allocated Rs 3.25 lakh crore, compared to Rs 63,000 crore under the UPA.

Mocking the Congress, he remarked, “Whenever something positive happens in the state, they take credit, but if things go wrong, they blame the BJP. At least they didn’t accuse us of making it rain during the recent heavy downpours!”

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