State gets just Rs 52 cr from Centre

Memorandum will be submitted to Union govt



The State is entitled for Rs 139 crore annually. Under the CRF, the Centre will provide 75 per cent fund, while the State has to bear the remaining 25 per cent. So, the Centre releases a total of Rs 104 to the State in two installments in a year. The first installment was released in July, 2009, official sources said.

Centre yet to respond

For the recent floods in north Karnataka, the State government will submit a detailed memorandum to the Centre seeking funds under the CRF.
Chief Minister B S Yeddyurappa had submitted a status report to the Union Home Minister and the Congress chief in Bellary recently.

In the report, he urged the Centre for assistance to the State to provide immediate relief to the affected people and he didn’t seek funds under the CRF, sources said.
The Centre has powers to release what is called an outright grant if the situation warrants. But the Centre is yet to respond to the CM’s request, official sources added.

 IT exemption

To encourage people to liberally extend help in rehabilitating the flood-affected people, the State government provided 100 per cent income tax exemption to monetary contributions made towards the Calamity Relief Fund of Karnataka.

The Government has brought the Calamity Relief Fund under the CM’s Relief Fund, which does not attract income tax. An order to this effect was issued on Wednesday.
Meanwhile, BangaloreOne centres and office of the deputy commissioners at district centres have been authorised to collect contributions from the public for the relief and rehabilitation works in order to prevent misuse of public contributions in the name of relief works.

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