New Delhi, (Thestates.news) | Karnataka Chief Minister Siddaramaiah on Friday wrote a letter to Prime Minister Narendra Modi highlighting several critical issues affecting the state and seeking urgent intervention from the Central Government. Expressing concern over the significant reduction in NABARD assistance, Siddaramaiah stated that the allocation for the state had been cut by 58%, from ₹5,600 crore in 2023-24 to ₹2,340 crore in 2024-25. He emphasised that this reduction would severely impact farmers and increase the financial burden on the state.
To mitigate the situation, the Chief Minister urged the Centre to provide additional interest subsidies and restore adequate NABARD funding to ensure farmers can access short-term crop loans without difficulty. Later, Siddaramaiah met PM Modi in Delhi for a discussion on related matters. He also addressed the delay in implementing the Bhadra Upper Embankment Project, which was approved in the 2023-24 Union Budget with a promised grant of ₹5,300 crore. He requested that the project be expedited under the Rapid Irrigation Benefit Programme to provide irrigation facilities for agricultural lands in Central Karnataka.
Additionally, he stressed the urgent need for approvals for the Mekedatu and Kalasabanduri irrigation projects, critical for water management in the state.The Chief Minister highlighted the challenges of urban development in Karnataka, a rapidly urbanising state with 13 metropolitan corporations. He pointed out that the ₹2,000 crore allocated under the Mahatma Gandhi Urban Development Scheme was insufficient to address the infrastructure needs of second-tier cities.
Siddaramaiah called for an additional ₹10,000 crore under AMRUT or other schemes to facilitate comprehensive urban development. On the issue of the 15th Finance Commission, Siddaramaiah criticised the reduction in Karnataka’s tax share by 1%, stating that the state had been unfairly penalised despite contributing significantly to the Centre’s tax revenues. He sought compensation grants of ₹5,495 crore and a special grant of ₹6,000 crore for peripheral ring roads and water source revival.
The Chief Minister also urged the 16th Finance Commission to adopt a fairer approach to tax distribution, ensuring that states contributing more to the national pool are not subjected to substantial cuts in allocations. He concluded by expressing hope for a favourable response from the Prime Minister and the Finance Ministry, emphasising the urgency of addressing these issues to safeguard Karnataka’s interests.(UNI)