Lok Sabha Question No. 3927 (UNSTARRED), answered on 2019-01-04
Subject: Devolutionary Grants to Karnataka
Ministry: FINANCE
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. 3927

TO BE ANSWERED Friday, January 4, 2019/Pausha 14, 1940 (Saka)

## Devolutionary Grants to Karnataka

## 3927.   SHRI PRATHAP SIMHA:

## KUMARI SHOBHA KARANDLAJE:

Will the Minister of FINANCE be pleased to state:-

- (a)   whether  Karnataka  has  got  an  increase  in  devolutionary  grant  to  the  tune  of  155.14  per  cent,  under  the recommendations of Fourteenth Finance Commission;
- (b)   if  so,  the  details  thereof  and  the  funds  received  by  the  State  during  the  last  three  years  under  this  head, Category-wise;
- (c)   whether  Karnataka  contributes  9.56  percent  of  the  overall  Central  revenue,  but  it  gets  back  around  4.5 percent, if so, the details thereof;
- (d)   the total Central loan given to Karnataka Government as on date, indicating principal amount and interest separately; and
- (e)   the loan paid back to the Central Government during the last three years and the steps taken to recover the loan?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI P. RADHAKRISHNAN)

(a) & (b): No. The details of grants provided to the State Government of Karnataka under recommendations of the 14th Finance Commission (FC) are as follows:

( Rs. in Crore)

| Sl. No.     | Items                                       |   13 th FC (2010-15) Actuals | 14 th FC (2015- 20) Estimated   | Increase over 13 th FC Actuals   | %Increase over 13th FC Actuals   |
|-------------|---------------------------------------------|------------------------------|---------------------------------|----------------------------------|----------------------------------|
| 1           | Estimated Share in Central Taxes and Duties |                     61691    | 186925.00                       | 125233.98                        | 203.00                           |
| 2           | State Disaster Relief Fund (SDRF)           |                       667.07 | 1145.25                         | 478.18                           | 71.68                            |
| 3           | Local Body Grants                           |                      6534.44 | 15145.54                        | 8611.10                          | 131.78                           |
| 4           | Other Grants discontinued by FFC*           |                      4316.86 | -                               | -                                | -                                |
| Grand Total | Grand Total                                 |                     73209.4  | 203215.79                       | 130006.40                        | 177.58                           |

Source: Report of the respective Finance Commission

*Finance Commission grant(s) available during 13 th FC has been discontinued by 14 th FC. . Post devolution revenue deficit grant also recommended by the 14th FC. However, no such grant was recommended for the State of Karnataka.

(c): Record of State-wise contribution to Revenue Receipts of the Central Government is not captured in the present system. The State of Karnataka gets approximately 4.7% of the total devolution of Central Taxes and Duties to the States under the 14 th Finance Commission compared to 4.3% in the 13 th Finance Commission Period. Details are as follows:

(Rs. in crore)

| 13 th FC Award Period   | 13 th FC Award Period   | 13 th FC Award Period   | 13 th FC Award Period   | 13 th FC Award Period   | 13 th FC Award Period   | 14 th FC Award Period   | 14 th FC Award Period   | 14 th FC Award Period   | 14 th FC Award Period   | 14 th FC Award Period   |
|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
| Percentage              | 2010-11                 | 2011-12                 | 2012-13                 | 2013-14                 | 2014-15                 | Percentage              | 2015-16                 | 2016-17                 | 2017-18                 | 2018-19                 |
| 4.328                   | 9506.31                 | 11075.04                | 12647.14                | 13808.28                | 14654.25                | 4.713                   | 23983.34                | 28759.94                | 31751.99                | 37145.65                |

Further,  the  State  Government  of  Karnataka  also  receives  Grants-in-aid  including  Finance  Commission  Grants, Centrally Sponsored Schemes and others. The year-wise details are as follows:

| Year                                                                   |   (Actuals) |   2016-17(Actuals) |   (Rs. in crore) 2017-18 (RE) |
|------------------------------------------------------------------------|-------------|--------------------|-------------------------------|
| Grants-in-aid from Central Government to State Government of Karnataka |     13928.8 |            15703.2 |                       16082.3 |

(d) & (e): The details of the Central Loans given to the Karnataka Government and the principal amount and Interest paid back by the State Government of Karnataka to the Central Government in the last three years are as follows:

## (Rs in Crore)

| Year    |   Central loan given | Principal amount repaid   |   Interest repaid |
|---------|----------------------|---------------------------|-------------------|
| 2015-16 |              1271.02 | 943.82                    |            667.84 |
| 2016-17 |              1917.93 | 1121.03                   |            646.95 |
| 2017-18 |              1943.25 | 1176. 90                  |            642.34 |