Chief Minister Siddaramaiah lamented that despite Karnataka’s proven track record of sound fiscal performance, it is not receiving any incentives for its fiscal efficiency. He said this after inaugurating the national-level seminar on ‘Fiscal Federalism: Challenges Before the Sixteenth Finance Commission’, organised by M.S. Ramaiah University of Applied Sciences in the city on Saturday.
Mr. Siddaramaiah emphasised that Karnataka’s macro-fiscal performance has been noteworthy with the distinction of being the first State to promulgate the Fiscal Responsibility Act. The macro-fiscal indicators such as fiscal deficit and revenue deficit have always been within the stipulated limits, barring the post-COVID-19 pandemic reappearances of revenue deficits, he said.
The Chief Minister said the State does not have adequate resources to attain the vision of $1 trillion GSDP by 2032. “Furtherance of the State’s economic and human development requires significant investments in human and physical infrastructure. Despite Karnataka’s proven track record of very sound own tax performance, the resources are not adequate to meet the growing challenges and also attain the vision of $1 trillion GSDP by 2032,” Mr. Siddaramaiah said.
