Karnataka has expressed concern over Rs 400 crore decline in State’s share in Central taxes.
Reacting to the Union Budget 2013, Karnataka Chief Minister Jagadish Shettar said, “During the current financial year, State’s share in Central taxes is indicated to come down by 3.4 per cent. As a result, Karnataka will get Rs 400 crore less than the Budget estimates in FY 2012-13.”
Further, Central assistance for Karnataka is expected to come down by Rs 18,000 crore, which is 14 per cent of Budget Estimates. “As a result, Karnataka will get Rs 1,000 crore less than the Budget estimates in FY 2012-13,” Shettar said.
The Chief Minister also expressed dissatisfaction as Bangalore did not feature in the Budget. “Due attention has not been given to improve basic infrastructure. We had requested Central support to improve the infrastructure of Bangalore which has global reputation. But, no such support is given in the Budget.”
New funds have not been released for the last three years under the PMGSY scheme to Karnataka which has successfully implemented this scheme. “We had demanded the Centre to release fresh funds in this regard. Though PMGSY - 2 has been announced, the guidelines are missing,” he said.
“On the whole, this is a Budget aimed at maintaining the status quo. It does not contain programmes that can trigger faster economic growth. Therefore, I consider this Budget to be a lacklustre one,” Shettar added.