Did the NDA Provide Karnataka with 273% More Funding than the UPA?
Synopsis
Key Takeaways
- Over 273% more funds allocated by NDA compared to UPA.
- 15th Finance Commission recommendations influenced funding.
- State government accused of misleading the public.
- NDA's funding significantly higher over the past decade.
- Interest-free loans provided to Karnataka by the Centre.
New Delhi, Oct 24 (NationPress) Union Minister for Food, Public Distribution and Consumer Affairs Pralhad Joshi asserted that under the guidance of Prime Minister Narendra Modi, the NDA government has allocated over 273% more funds to Karnataka compared to what the UPA government provided.
“Despite this, the state government remains silent on the matter,” the Union Minister stated during a press conference in Delhi on Friday.
The minister dismissed claims that the central government was showing bias against Karnataka regarding grant disbursements, labeling such allegations as misleading.
He mentioned that the 15th Finance Commission had proposed several recommendations concerning grants for Karnataka.
“However, the final report did not incorporate two of those recommendations. As a result, no special grant has been released by the Centre,” he explained.
Joshi further contended that the state government is misinforming the public without comprehending these details.
He emphasized that the PM Modi-led NDA government has dispensed more than double the grants compared to the previous UPA administration.
“The 15th Finance Commission initially proposed certain specific measures for Karnataka, including a suggestion for a special grant of Rs 5,495 crore to compensate for the decrease in tax devolution share, which fell from 4.71% during the 14th Finance Commission period to 3.64% under the 15th Finance Commission,” he stated.
He noted, however, that the final report of the 15th Finance Commission did not include this proposal, hence, the Centre did not issue any special grant, as he clarified.
“From 2004 to 2014, the UPA government allocated Rs 81,795 crore to Karnataka as tax devolution grants. In contrast, from 2014 to 2024, the NDA government has dispensed a total of Rs 2.93 lakh crore, which is more than 273% higher than the UPA's contribution,” he claimed.
Joshi stated that in the current financial year alone, Karnataka has received Rs 51,876 crore, and over the last 11 years, the state has been granted a total of Rs 3.45 lakh crore in tax devolution grants.
“Between 2004 and 2014, the UPA government allocated Rs 60,000 crore in subsidy-related grants to Karnataka. In contrast, the NDA government from 2014 to 2024 has provided Rs 2.39 lakh crore—an increase of over 290%. For the financial year 2025–26, the Centre has earmarked Rs 16,000 crore, bringing the total subsidy-related grants over 11 years to Rs 2.56 lakh crore,” he stated.
He also highlighted that since 2020-21, the Centre has allocated Rs 14,641 crore to Karnataka as interest-free loans for 50 years, with the complete interest burden covered by the central government.
The minister reiterated that the central government consistently “disburses funds” to states in strict alignment with Finance Commission recommendations.
“Under the 12th Finance Commission (2005–2010), the share of tax devolution was 30.5%; under the 13th Finance Commission (2010–2015), it was 32%; under the 14th Finance Commission (2015–2020), it increased to 42%, and under the 15th Finance Commission (2020–2026), it currently stands at 41%,” he stated.
He also noted that the 1% reduction was due to the reorganization of Jammu and Kashmir into two Union Territories.
Joshi further asserted that under Prime Minister Modi, the NDA government has consistently provided over 10% more funds compared to all previous administrations.
“Yet, the Congress-led Karnataka government continues to assert that the Centre owes the state Rs 11,495 crore as per the 15th Finance Commission’s recommendations, which is misleading and untrue,” the minister claimed.
He accused the state government of obscuring the real facts and unjustly blaming the Centre, emphasizing that such actions are intolerable.