<p>Bengaluru: Union Minister Ashwini Vaishnaw on Saturday dismissed the Karnataka government’s claim that the state was short-changed in tax devolution, asserting that a majority of central taxes ultimately flow back to the states under a constitutionally mandated framework.</p>.<p>Addressing the media, Vaishnaw said the state’s share of Rs 63,000 crore from tax devolution was only one component of central support and that large investments in airport connectivity, national highways, PM Gram Sadak Yojana, metro projects, railways, semiconductor and electronics manufacturing, and welfare schemes such as PM Garib Kalyan Yojana were "over and above" this amount.</p>.<p class="bodytext">Explaining the GST structure, Vaishnaw said states retained 50% of the total GST collection and received 41% of the Centre’s share of taxes.</p>.AI disruption in IT industry: Minister Vaishnaw calls for accelerating upskilling and reskilling workforce.<p class="bodytext">"Out of the total tax kitty, the majority comes back to the states. This structure was created with the consensus of all states through GST council, which includes finance ministers of all states. People should not be misled," he said.</p>.<p class="bodytext">Responding to Chief Minister Siddaramaiah’s criticism that the Union Budget resembled a "corporation budget" and that allocations to centrally sponsored schemes had been cut, Vaishnaw said such comments reflected short-term thinking.</p>.<p class="bodytext">"Leaders who think only in one-year cycles will always call it a corporation budget," he said, adding that Prime Minister Narendra Modi was laying the foundation for Viksit Bharat by 2047.</p>.<p class="bodytext">Had previous Congress governments taken similar long-term decisions since 1947, the country’s economic trajectory would have been vastly different, he said, citing the missed opportunity to develop the semiconductor industry decades ago.</p>
<p>Bengaluru: Union Minister Ashwini Vaishnaw on Saturday dismissed the Karnataka government’s claim that the state was short-changed in tax devolution, asserting that a majority of central taxes ultimately flow back to the states under a constitutionally mandated framework.</p>.<p>Addressing the media, Vaishnaw said the state’s share of Rs 63,000 crore from tax devolution was only one component of central support and that large investments in airport connectivity, national highways, PM Gram Sadak Yojana, metro projects, railways, semiconductor and electronics manufacturing, and welfare schemes such as PM Garib Kalyan Yojana were "over and above" this amount.</p>.<p class="bodytext">Explaining the GST structure, Vaishnaw said states retained 50% of the total GST collection and received 41% of the Centre’s share of taxes.</p>.AI disruption in IT industry: Minister Vaishnaw calls for accelerating upskilling and reskilling workforce.<p class="bodytext">"Out of the total tax kitty, the majority comes back to the states. This structure was created with the consensus of all states through GST council, which includes finance ministers of all states. People should not be misled," he said.</p>.<p class="bodytext">Responding to Chief Minister Siddaramaiah’s criticism that the Union Budget resembled a "corporation budget" and that allocations to centrally sponsored schemes had been cut, Vaishnaw said such comments reflected short-term thinking.</p>.<p class="bodytext">"Leaders who think only in one-year cycles will always call it a corporation budget," he said, adding that Prime Minister Narendra Modi was laying the foundation for Viksit Bharat by 2047.</p>.<p class="bodytext">Had previous Congress governments taken similar long-term decisions since 1947, the country’s economic trajectory would have been vastly different, he said, citing the missed opportunity to develop the semiconductor industry decades ago.</p>
