JOIN USTerming the Union Budget as pro-corporate and anti-poor, Chief Minister Siddaramaiah said on Saturday that Karnataka will not benefit from the budget.
“The budget is not development oriented. The Centre has accepted the recommendation of the 14th finance commission but extra funds will be neutralised due to drastic cuts in centrally sponsored schemes,” Siddaramaiah said.
The chief minister welcomed the setting up of an Indian Institute of Technology (IIT) in the State and Hampi being given a special status.
The State may receive close to Rs 6,000 to Rs 7,000 crore from the finance commission but the same may be lost due to drastic reduction in central government sponsored schemes. “If the Centre reduces its contribution to projects from 90 per cent to 60 per cent, there will be a drastic increase in our financial burden. How can the State bear such a burden?” he questioned.
The cuts in the budget will also have a drastic effect on the education sector in the State.
“They wanted to ensure corporates receive the benefits by giving a tax break of five per cent. I do not know why they wanted corporates to benefit,” he said.
“Though there is an increase of funds earmarked for Mahatma Gandhi National Rural Employment Guarantee Act, it is negligible,” he added.