Finance Minister Nirmala Sitharaman Criticizes Karnataka Government Over Funds and Inflation
Finance Minister Nirmala Sitharaman has criticized the Congress-led Karnataka government for alleging that the central government has not allocated ample funds for the state. She also targeted the state government for not being able to control its inflation, which is currently above the national average.
At a post-budget press conference in Bengaluru, Sitharaman outlined that central transfers to Karnataka have increased substantially under Prime Minister Narendra Modi’s government. She compared the funds received by Karnataka during the UPA government (2004-2014) and the current government (2014-2024), showing a significant increase in both tax devolution and Grants-in-Aid.
She further detailed the financial aids provided to Karnataka, including Rs 45,485 crore budgeted as Tax Devolution for the financial year 2024-25 and Rs 8,312 crores released as 50-year interest-free loans.
Sitharaman also highlighted the budget allocated for railway projects in Karnataka, noting an increase from an average annual outlay of Rs 835 crore between 2009-14 to Rs 7,559 crores in 2024-25. She mentioned ongoing railway projects worth Rs 47,016 crores and the operation of seven Vande Bharat trains in the state.
Addressing the issue of inflation, Sitharaman pointed out that Karnataka’s inflation rate was 6.1% between June 2023 and June 2024, higher than the national average of 5.4%. She attributed this spike to increased prices in petrol, diesel, milk, property, and vehicle registration fees.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and economy. In India, this person makes important decisions about taxes, spending, and financial policies.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She is a member of the Bharatiya Janata Party (BJP) and has held this position since 2019.
Karnataka Government -: The Karnataka Government is the governing body of the Indian state of Karnataka. It is responsible for making decisions and laws for the state.
Congress-led -: Congress-led means that the Indian National Congress party is the main party in charge of the Karnataka Government. The Congress party is one of the major political parties in India.
Central funds -: Central funds are money given by the central government of India to the state governments to help them run their states and pay for various projects and services.
Inflation -: Inflation is when the prices of goods and services go up over time. This means that things like food, fuel, and other items become more expensive.
PM Modi -: PM Modi refers to Prime Minister Narendra Modi, who is the current Prime Minister of India. He is the leader of the Bharatiya Janata Party (BJP).
UPA era -: The UPA era refers to the time when the United Progressive Alliance (UPA), a coalition of political parties led by the Congress party, was in power in India before the BJP.
Financial aids -: Financial aids are various forms of help given by the government, such as money or resources, to support projects, services, or people in need.
Railway projects -: Railway projects are plans and constructions related to the railway system, like building new train tracks, stations, or improving existing ones.
Petrol and diesel -: Petrol and diesel are types of fuel used in vehicles like cars, bikes, and trucks. They are made from oil and are essential for transportation.
Vehicle registration fees -: Vehicle registration fees are the charges you pay to the government to officially register your vehicle, like a car or bike, so you can legally drive it on the roads.