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This story is from August 14, 2023

Drop 'penalties' for populist schemes, Karnataka tells Centre

Drop 'penalties' for populist schemes, Karnataka tells Centre
BENGALURU: Facing challenges in generating resources for funding its five poll guarantee schemes, the Congress government in Karnataka has reached out to the Centre, requesting the removal of clauses concerning "control on populist schemes" in order to secure the full amount owed under funds' devolution.
The response comes following the Centre's call for suggestions from states to formulate the terms of reference (TOR) for the 16th Finance Commission.
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High-ranking officials revealed that the Karnataka government has voiced objections to a clause in the TOR of the 15th Finance Commission, which involves "control or lack of it in incurring expenditure on populist measures". This clause is considered one of the benchmarks for measurable performance-based incentives for states.
The official communication from the Siddaramaiah government strongly asserts, "Such criteria should not be included in the TOR for the 16th Finance Commission..." This letter followed the Centre's criticism of states participating in what PM Modi has often referred to as the "revadi culture", viewing it as detrimental to national development.
It maintained that states have the "liberty" to design their own schemes and contended that Finance Commission should not "prescribe" to state governments the definition of development or the classification of policies as populist.
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About the Author
Sandeep Moudgal

Journalist by profession, 15 years in the field with Politics and Policy as forte. He is an Assistant Editor with Bengaluru bureau and Karnataka as his jurisdiction. Has a Masters degree in Ancient History and Archaeology from Mysore University along with a PGDJ from the Asian College of Journalism.

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