Karnataka's claim that Centre withheld grants is politically motivated: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman lashed out at Adhir Ranjan Chowdhury, leader of the Congress in Lok Sabha, after he cited the Karnataka government's accusations of grant withholding by the central government. The Finance emphasised the integrity of the system, stating that the Finance Commission's report guides grant allocations, dismissing any notion of arbitrary decision-making.   

In the realm of fiscal governance, the allocation of grants to states by the Finance Commission holds significant importance. Amidst allegations of discrimination and withholding of grants to Karnataka, the Union Finance Minister reiterated the role and authority of the Finance Commission in determining state allocations.

The Karnataka government's impending protest in Delhi on February 7, alleging discriminatory practices in grant releases, has sparked a contentious debate.
However, Sitharaman has firmly dismissed these allegations, labelling them as politically motivated and devoid of factual basis. Central to her rebuttal is the assertion that it is the Finance Commission, not the Union Finance Minister, that allocates grants to states. Sitharaman emphasised that she lacks the authority to intervene or alter these allocations. 

Instead, she urged states to engage directly with the Finance Commission to address any grievances or concerns regarding grant disbursements. The Finance Commission, as a constitutional body, operates independently and impartially to recommend allocations based on various factors such as population, socio-economic indicators, and fiscal capacity. Sitharaman underscored her adherence to the Commission's recommendations, highlighting the non-negotiable nature of these guidelines. 

Moreover, Sitharaman addressed concerns regarding the utilisation of allocated funds, particularly in the context of guarantee schemes. She emphasised the importance of transparency and accountability in expenditure, urging states to ensure that they utilise funds for their specified purposes.