"Central funds to Karnataka increased under Modi government": Sitharaman counters Congress-led state's allegations

Bengaluru (Karnataka) [India], July 28 : Finance Minister Nirmala Sitharaman has lashed out at the Congress-led Karnataka government for alleging that the central government has not allocated ample funds for the state. She also targeted the state government for not being able to control its inflation, which is currently above the national average.
Central transfers to Karnataka have increased substantially under Prime Minister Narendra Modi's government, Sitharaman said at a post-budget presser in Bengaluru, outlining some of the key figures.
Between 2004 and 2014, when the UPA government was in power at the Centre, she said Karnataka received only Rs 81,791 crores as tax devolution over that decade. However, between 2014 and 2024, under PM Modi, she said Karnataka received Rs 2,95,818 crores.
She further said Karnataka received Rs 60,779 crores as Grants-in-Aid from 2004-14 under UPA. On the other hand, the state received Rs 2,39,955 crores as Grants-in-Aid from 2014-24.
She added Rs 45,485 crore has been budgeted as Tax Devolution for Karnataka in the financial year 2024-25.
"A total of Rs 8,312 crores have been released to Karnataka as 50-year interest-free loans. Additionally, Rs 2,006 crores have been provided for 50-year interest-free loans for this FY 2024-25," Sitharaman said.
"The government of today keeps telling people that oh, the central government doesn't give Karnataka its due. Completely false... I am willing to answer but it is the wrong advertisement which the current government in Karnataka keeps doing, which I am sorry is not helping anybody, leave alone the central government even the people of Karnataka are not getting the factual information," Sitharaman said in the press conference.
Turning to the allocated budget for railway projects in the southern state, Sitharaman said an average annual outlay between 2009-14 for Karnataka in railways was Rs 835 crore. However, under the Modi government, it was Rs 7,559 crores for the state in 2024-25 for railways alone.
"There are 31 ongoing railway projects for laying new tracks of 3,840 km in Karnataka. The worth of these projects is Rs 47,016 crores. Since 2014, 638 rail flyovers and under-bridges have been constructed in Karnataka. At present, seven Vande Bharat trains are in operation in Karnataka," Sitharaman said.
Sharpening her attack on inflation, she said between June 2023 and June 2024, while average national inflation was 5.4 per cent, in Karnataka it averaged 6.1 per cent.
In contrast, from June 2022 to May 2023, Karnataka experienced lower inflation of 5.39 per cent compared to the national average of 6 per cent, she said, in apparent reference to the good inflation management of the previous BJP government.
She pointed out five reasons for which inflation spiked above the national average -- petrol prices were hiked by Rs 3 and of diesel by Rs 3.5 per litre, milk prices have increased by Rs 5 in successive hikes, property guidance value hiked by 25-30 per cent, stamp duty charges for properties have increased by 200-500 per cent, vehicle registration fees have been hiked by 3 per cent, and an additional 10 per cent lifetime tax on EVs has been imposed.