Karnataka Funds Released Timely: FM Nirmala Sitharaman

New Delhi, Feb 7 (PTI) Finance Minister Nirmala Sitharaman on Wednesday said the Centre has timely released all funds due to the Karnataka government as has been recommended by the Finance Commission from time to time.

In addition, Karnataka has also been provided interest-free loan for 50 years for undertaking infrastructure development activities, Sitharaman said while replying to a debate on the Union Interim Budget, Jammu and Kashmir Interim Budget and Supplementary Demands for Grants.

The Lok Sabha passed the Rs 47.66-lakh-crore interim Budget 2024-25 of the Union Government and Rs 1.8 lakh crore budget of the Union Territory of Jammu and Kashmir with a voice vote. The lower house also approved the Supplementary Demands for Grants and relevant appropriation Bills.

"I want to assure the House that whatever has been recommended by the Finance Commission, I followed to the last word," she said wondering "where is the Karnataka denied money".

Reeling out numbers, she said, as per the recommendation of 13th Finance Commission, Karnataka was given Rs 61,691 crore while Rs 1,51,309 crore were provided as recommended by the 14th Finance Commission.

She said Rs 1,29,854 crore has been provided to the state for four years as against the five-year term of the 15th Finance Commission.

It is estimated that at the end of the fifth year, Karnataka would've received Rs 1,74,339 crore, she said, adding, this is regards to tax devolution.

"If you look at Grants-in Aid, in 10 years of UPA, Karnataka received Rs 60,779.84 crore. In nine years of Modi government, Karnataka received Rs 2,08,832.02 crore. Over and above that, Additional Grants-in-Aid of Rs 18,005 crore have been budgeted this year for release for Karnataka.

"In our 10 years, Karnataka is getting Rs 2, 26,837 crores. Karnataka has also received Rs 6,280 crore as 50-year interest free loan. Where is Karnataka being denied money? Where is Karnataka receiving less money?" she said.

Karnataka Chief Minister Siddaramaiah has alleged "injustice" meted out by the Centre on devolution of tax share to the state and staged a dharna in Delhi in support of the demand.

While referring to the price rise, she said retail inflation is stable and has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities.

India's retail inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 per cent in the corresponding period of 2023. The retail inflation is now stable and within the notified tolerance band of 2 per cent to 6 per cent.

The minister said that in order to check the volatility in prices of onion, the government has progressively increased its buffer size from 1 lakh metric tonnes (LMT) in 2020-21 to 7 LMT in 2023-24. As of February 3, 2024, a total of 6.32 LMT of onion was procured, and 3.96 LMT of Grade-A onion was released through retail sales, e-Nam auction and bulk sales.

India has also brought the branded 'Bharat Dal' through which Chana Dal is made available at Rs 60 per kg in a single pack and Rs 55 per kg for a 30 kg pack. 2.97 lakh metric tonnes of Chana have been sold already as of January 30, 2024. 'Bharat Dal', which is coming at a concessional price, is available in all retail markets.

Meanwhile, she said, Bharat Atta is being sold and a huge quantity has been lifted by the people.

'Bharat Atta' is being sold at a subsidised rate of Rs 27.50 per kg to give relief to consumers.

Retail inflation, based on the Consumer Price Index (CPI), in December 2023, stood at 5.69 per cent.

Sitharaman also said while the workforce has gone up, the unemployment rate has declined significantly. She also added, that the number of people enrolled in the EPFO has gone up substantially.

Talking about the fiscal deficit, she said the government has tried to improve the glide path prescribed in the Fiscal Responsibility & Budget Management (FRBM) Act.

She said that the fiscal deficit was 2023-24 has lowered to 5.8 per cent from 5.9 per cent estimated earlier.

For the next financial year, the fiscal deficit has been pegged at 5.1 per cent of the GDP as against 5.2 per cent suggested in the glide path.

She also said that allocation for social sector and development schemes has been increased in the Interim Budget.

Talking about the Performance Linked Incentive Schemes, she said, so far 7 lakh direct and indirect employment have been created.

"14 sectors benefit from the PLI Schemes brought by our government. Manufacturing locations are coming up in 24 states and more than 150 districts. The Government has committed nearly Rs 1.97 lakh crores over five years starting 2021-22 Rs 1.07 lakh crore worth of investment has been committed under the PLI Schemes," she said.

Exports worth Rs 3.40 lakh crore are happening and 176 MSMEs are selected as direct beneficiaries of the PLI Scheme, she said.

Responding to issues raised by members with regard to Per Capital Income of people in Bangladesh and Sri Lanka, she said "just comparing per capita GDP does not give a clear picture."

She said one needs to look at the economic growth also.

India is the fastest-growing major economy in the world and is expected to clock over 7 per cent growth rate for the fourth year in a row.