₹7,425 crore special development funds will be released to 196 MLAs, says Rayaraddi
Addressing presspersons in Hubballi on Monday, Mr. Rayaraddi, who is Economic Advisor to Chief Minister, rubbished the Opposition allegation that the State government does not have enough funds for development works.
'I am part of the budget preparation team which held elaborate discussions. In the budget for 2025-26, ₹83,000 crore has been earmarked for capital expenditure which is more than what the previous BJP government set aside for the purpose,' he said.
Mr. Rayaraddi said that in the special grant scheme, MLAs under BBMP limits have been excluded as the government has already announced special grants to constituencies in the BBMP limits and they are already getting more funds.
'Of the 224 MLAs, 28 MLAs (12 Congress, 16 Opposition) are under the BBMP limits and they have been excluded. It has been decided to release ₹50 crore for Congress MLAs and ₹25 crore to Opposition MLAs. It has also been decided to give ₹25 crore to Congress MLAs in Kalyana Karnataka as under KKRDB (Kalyana Karnataka Region Development Board) too special grants have been allocated. It all comes to ₹7,425 crore,' he said.
'However, keeping in mind the likely demand of MLAs from Kalyana Karnataka region for grant of ₹50 crore instead of ₹25 crore, we have set aside ₹8,000 crore,' he said.
Mr. Rayaraddi also clarified that in continuation of the decision taken on special grants, Chief Minister Siddaramaiah will be personally having one-on-one meetings with MLAs which will be held for three days.
'In fact, the proforma has already been given to MLAs to indicate their priorities for special grants and they have been asked to submit them indicating their choice. Subsequently, the Chief Minister will have one-on-one meetings with them. We have also suggested to the Chief Minister to have similar meetings with Opposition MLAs too which may happen subsequently,' he said.
To a query, he clarified that the issue of special grants has nothing to do with the visit of AICC general secretary Randeep Singh Surjewala, as it was decided earlier. On the reduced grants for Opposition MLAs, he said that the BJP started it during its regime.
21.6% collection
Mr. Rayaraddi said that out of the total tax collection for the current fiscal (2025-26), the State government has already received ₹43,935 crore in the first quarter (June-end), which is 21.6% of the targeted collection (₹2,03,000 crore). 'Our economic condition is strong. Our expectation is that we may reduce the budget deficit to zero in the next fiscal,' he said.
Mr. Rayaraddi said that Karnataka is No 2 in the country in GST collection and No 1 in GSDP (Gross State Domestic Product) which indicates that the State is a prosperous one. 'The required assistance from the Centre will help it further grow. However, the State is yet to receive ₹11,000 crore recommended in the 15th Finance Commission and ₹5,000 for the Bhadra Irrigation Project which has been declared a national project,' he said.
On Union Finance Minister Nirmala Sitharaman's statement that recommendation is only in the interim report and not in the final one, Mr. Rayaraddi sought to know why Kerala has received funds according to what they termed as interim report, while Karnataka has not.
Mr. Rayaraddi said that the State government has already approached the 16th Finance Commission with details of the injustice meted out to it in devolution of funds. The reduction in Karnataka's share under the 15th Finance Commission to 3.647% from 4.713% has resulted in a cumulative loss of over ₹80,000 crore during the award period and this has been brought to the notice of the commission. 'The commission has assured us of studying it further and making amends,' he said.
Petty issues
The senior Congress leader said that instead of assisting the ruling party in getting issues concerning funds and development resolved, the BJP leaders are doing politics over petty issues and making comments.
'Ideally, as a responsible Opposition, it should have helped the ruling party in addressing the issues of development concerning the State,' he said.
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