Chief Minister Siddaramaiah has submitted a list of 22 demands to the Union Finance Minister Nirmala Sitharaman, ahead of the Union Budget 2025-26, which will be tabled in the Parliament on Saturday.
Siddaramaiah, who attended the pre-budget meeting of finance ministers of states and union territories, chaired by Sitharaman recently, has called attention to the reforms needed to make the central schemes and their funding more effective.
The CM urged the Centre to route the funds for the Centrally Sponsored Schemes (CSS) through the state’s consolidated fund to ensure accountability to the legislature and effective monitoring.
“The Centre directly transferring money to the single nodal agency (SNA) for the centrally sponsored schemes (CSS) bypasses the legislative scrutiny and approval and also escapes audit by the Auditor General as it is not part of the state’s financial records. This is not only undermining the democratic control and leading to lack of transparency and accountability of public funds,” noted Siddaramaiah, adding that the Union Budget Volumes should clearly specify the allocation for each state under various CSS to help states plan their matching grant realistically.
Also read
- Karnataka BJP attack on Priyank Kharge over AI image of Unnao rape-accused sparks online war: Here is why
- Karnataka: 10 feared dead in bus-truck collision in Chitradurga; most victims burnt alive
- Ousted Karnataka minister Rajanna writes to Rahul Gandhi over 'vote chori' remark fallout, highlights organisational lapses
- 'There was never a deal; will remain CM for full five years': Siddaramaiah's final blow to Shivakumar's CM ambitions?
“States should have a say in the formulation of these schemes, to help address local requirements. Also, there is a substantial gap between the approved annual action plans and the actual fund releases, which is burdening the state. So, the Centre should release the entire funds as approved in the budget,” said the CM, also suggesting that the funding through reimbursement basis was stressing the state’s finances.
Seeking an enhancement of the Centre’s contribution to schemes, including honorariums for Anganwadi workers, ASHA workers, and social security pensions, Siddaramaiah said the revision was long pending.
“The coverage and quantum of Social Security Pension under the National Social Assistance Programme (NSAP) needs to be increased. Currently, the Centre provides assistance to only 14.14 lakh beneficiaries in Karnataka, and the state covers an additional 68.66 lakh beneficiaries through its own schemes. The Centre needs to expand its coverage from 17% to 50%,” said Siddaramaiah.
Drawing attention to the Centre providing health cover (60% assistance) to only 69 lakh under the Integrated Ayushman Bharat Arogya Karnataka scheme, though it covered 1.14 crore families under the National Food Security Act, Siddaramaiah said, “The state is bearing the additional burden of covering the remaining families excluded by the Centre.”
Outstandings
Seeking reimbursement of funds spent on minimum support price (MSP) operations, the CM asked the Centre to release the outstanding amount of Rs 2,461.49 crore, and also release the Special Grants of Rs 5,495 crore and State Specific Grants of Rs 6,000 crore awarded by the 15th Finance Commission.
The chief minister suggested that the cess and surcharge levied by the Centre should be made part of the divisible pool shared with the states, and the professional tax must be revised in light of the economic growth and inflationary pressures over the decades through an amendment to the Article 276 of the Constitution.
Pointing out that the states have been struggling to reach the anticipated tax growth of 14%, ever since the cessation of GST compensation, the CM proposed that the cess be absorbed into state GST to help augment state revenues without impacting Central taxes.
Besides, a comprehensive new scheme dedicated to the development of critical infrastructure in urban agglomerations, increase in Centre’s contribution to PMAY (housing) - Rs 5 lakh per beneficiary (Urban) and Rs 3 lakh per beneficiary (Rural), interest-free or soft loans to State DISCOMs, Central funds for the development of the backward Hyderabad-Karnataka region (in addition to the state funding of Rs 5,000 crore annually), State-Specific Grant of Rs 10,000 crore over the next five years for the comprehensive development of the Malnad Region that is prone to natural disasters, the CM sought revision of the methodology for allocating special assistance for Capital Expenditure by considering additional factors such as the state's economic growth and its spending capacity.
Siddaramaiah sought the Centre’s cooperation in expediting the Upper Bhadra project, notifying Krishna Water Dispute Tribunal II Award and implementation of the Kalasa Bandura Nala Diversion Scheme and Mekedatu project. He also sought urgent reforms to the National Disaster Relief Fund (NDRF) to ensure faster, more transparent, and accessible disbursements.