Union Budget 2025 | Karnataka seeks Rs 11,495 crore special grants among others

Bengaluru: Special matching grants for the development of the backward region of Kalyana Karnataka, approval for the Mekedatu project and release of Rs 11,495 crore of special grants recommended by the 15th Finance Commission were among the suggestions and requests made by the Karnataka government during a pre-budget consultation with the Centre.

Last month, Union Finance Minister Nirmala Sitharaman met finance ministers of states and union territories (UTs) to take their demands and suggestions for the Union Budget 2025-26, to be presented on February 1.

In his presentation at the meeting, Karnataka Revenue Minister Krishna Byre Gowda on behalf of the state government led by Chief Minister Siddaramaiah sought release of Rs 5,300 crore promised in the Union Budget to Upper Bhadra project to provide water to drought prone central Karnataka and special matching grants for the development of backward region of Kalyana Karnataka and the global eco sensitive Western Ghats.

The state urged the Central government to shift from a "reimbursement-based" system to an "advance-release" model for the implementation of the centrally sponsored schemes and also proposed increasing the Central share of their honorariums to Rs 5,000 per month for ASHA workers and Rs 2,000 for Anganwadi helpers.

According to a statement shared by the Gowda's office on Friday, the minister suggested increasing Pradhan Mantri Awas Yojana assistance from Rs 1.5 lakh to Rs five lakh for urban houses and from Rs 72,000 to Rs three lakh for rural houses.

Karnataka has requested additional railway lines, expedited projects, and Central support for 50 per cent of land acquisition and 100 per cent construction costs.

The state also urged approvals for road infrastructure proposals, including new ring roads and upgrades to National Highways.

Gowda has also requested the Union government to increase pensions for old-age, widows, physically-challenged persons.

The Karnataka government called for transparent and need-based reforms in disaster relief fund allocation and timely release of SDRF (State Disaster Response Force) funds, prioritising states' disaster vulnerabilities, it stated.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.