FM Sitharaman's claims on budgetary allocations not true, says Karnataka CM

Karnataka chief minister Siddaramaiah said on Monday, 29 July, that Union finance minister Nirmala Sitharaman was "lying" about budgetary allocations to Karnataka.

“Nirmala Sitharaman, who had come to Karnataka earlier, lied and left. Now, she is lying again,” the CM stated.

Sitharaman on Sunday rejected the allegations of the Congress government that the Centre gave a rough deal to the state in the Union Budget 2024-25, terming them as "false". Addressing a press conference at the BJP headquarters in Mysuru, FM Sitharaman presented figures to prove that Karnataka has been given its due in terms of allocation of funds.

She also said the state was suffering higher inflation than the national average under the current Congress government and the law and order situation was driving away companies out of the state.

Rejecting the statements, CM Siddaramaiah said in a media interaction in Mysuru, “She (Nirmala Sitharaman) claims that the state has been allocated more funds. However, the state that faced injustice in the 15th Finance Commission is Karnataka. She represents Karnataka in the Rajya Sabha. She has claimed that industries are leaving. The truth is that Foreign Direct Investment (FDI) coming into India has decreased by 31 per cent. This is due to their policies and programmes. It is Nirmala Sitharaman who frames these policies. Who is the Union minister for finance?” CM Siddaramaiah questioned.

When asked about the state’s contributions to central schemes, he responded, “In terms of tax payments, Karnataka is second only to Union finance minister Nirmala Sitharaman announced in the 2023-24 Union budget that a Rs 5,300 crore grant would be released for the Upper Bhadra project. Then CM Basavaraj Bommai also reiterated it in his budget. Did they release it?” CM Siddaramaiah asked.

“We boycotted the NITI Aayog meeting for the same reason. The meeting was not attended by Tamil Nadu, Telangana, and other governments opposed to the BJP. West Bengal CM Mamata Banerjee attended but also walked out. Now, they want to teach us?” CM Siddaramaiah said.

“They claim that we have borrowed more loans. We have availed loans within the Fiscal Responsibility Act. The loans should be within 25 per cent of the state’s GDP. The central government borrowed Rs 15 lakh crore loans,” he pointed out.

“Karnataka is not corrupt. Since we came to power, we have been fighting against corruption. Hence, during our government’s tenure, corruption has decreased. I will ask ministers M.B. Patil and Priyank Kharge to give a detailed response to Nirmala Sitharaman's allegations,” he stated.

“The central government had called a budget meeting, and we reminded them that they had declared Rs 5,300 crore would be given for the Upper Bhadra project. They should release the funds to us. They did not allocate the funds,” the CM stated.

“Under the 15th Finance Commission recommendation, Rs 5,409 crore special grants for the state and Rs 3,000 crore was promised for the peripheral ring road. Is it in the Budget? Rs 3,000 crore was promised for the development of water bodies. Did they give it? Is this not injustice?” CM Siddaramaiah said.

“They allocated funds for Andhra Pradesh and Bihar. What has been given to Karnataka? Union ministers H.D. Kumaraswamy and Nirmala Sitharaman claim that no injustice has been done to Karnataka. They could have proposed more grants in the interest of the state, but they did nothing. They could have got permission for the Mekedatu project. They are elected from Karnataka, but they did nothing,” he stated.

“Has Union minister for heavy industries and steel H.D. Kumaraswamy brought any new industry to his Mandya parliamentary constituency? Is any industry corridor given to Karnataka? No. They have not been granted the money demanded by the state. There is no Mekedatu project for us. We asked for AIIMS in Raichur; there was no discussion. We asked for an IIT in Mysuru or Hassan. Have they granted it? What have they given us? How can they claim that no injustice has been done to Karnataka?” CM Siddaramaiah lashed out.