Karnataka has eased more lockdown restrictions when compared to its counterparts
The opposition has criticised Prime Minister Narendra Modi for not releasing funds to the state
BENGALURU: Karnataka chief minister B.S.Yediyurappa on Monday said he was confident that the Centre will soon release funds to the state that is reeling under a financial strain following the covid-19 induced lockdown.
"I have 100% confidence that in the coming day he (PM Narendra Modi) is going to release more funds to Karnataka," Yediyurappa said in Bengaluru.
The statement comes at a time when Karnataka has been fighting acute funds shortage due to reduction in the state's share in central taxes amid the coronavirus crisis.
Karnataka has eased more lockdown restrictions when compared to its counterparts to revive its economy at a time when the state has seen a sharp spike in covid-19 cases.
With the Bharatiya Janata Party (BJP) in power in Karnataka and at the Centre, the opposition has criticised Prime Minister Narendra Modi for not releasing funds to the state. The PM and Centre continue to neglect Karnataka despite the BJP winning 25 out of the 28 seats in Lok Sabha elections, the opposition said.
The state has seen a reduction in funds inflow, including ₹8,887 crore because of a drop in Karnataka’s share in central taxes and an additional ₹3,000 crore reduction in goods and services taxes (GST) compensation. The state will also face a reduction of ₹11,215 crore under the new calculations of the 15th Finance Commission.
Karnataka was forced to increase taxes on petroleum and vehicle registration as well as reprioritise its own expenditures to mitigate the revenue shortfalls.
"Both the state and the Centre is facing a financial problem," Yediyurapp said.