Budget disappointing and average: Karnataka CM

Karnataka chief minister Siddaramaiah has termed the Union Budget as "disappointing and average" saying there could have been more funds allocated to the agricultural community considering that the government reaped the benefits of low crude prices.

"The expectations were high from the Finance Minister and Prime Minister for agriculture and rural demand. They could have allocated more funds to the agriculture sector," said Siddaramaiah here.
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While the government had accepted the 14th Finance Commission recommendations of increasing the devolution of taxes to 42 per cent from 32 per cent, the Centre has increased the burden of states because of the contribution in centrally sponsored schemes. This year, the burden on state has increased by Rs1987 crore

 

"The Finance Minister has taken away from one hand and given it to the other hand," said Siddaramaiah.

The government's move to impose 0.5 per cent cess on all services would benefit the Centre, without contribution to the state, he said, adding that more funds should have been allocated to the MNREGA scheme.