Nirmala Denies Withholding Funds To Non-BJP States

New Delhi: Strongly refuting allegations that the Centre was withholding funds meant for non-BJP governed states, finance minister Nirmala Sitharaman said Monday it was a politically-vitiated narrative that vested interests are happy to go about saying.

Replying to a question by Congress leader Adhir Ranjan Chowdhury in the Lok Sabha on the Karnataka government’s claim that the Centre wasn’t releasing funds, Ms Sitharaman said this cannot happen as the system is well placed and the Centre works according to recommendations of the Finance Commission.

“This apprehension that some states are being discriminated against is a politically-vitiated narrative which, I am sorry to say, vested interests are happy to go about saying,” Ms Sitharaman said. She added that no Union finance minister can play with the Finance Commission’s recommendations.

“This is just not a possibility that any finance minister can intervene to say that 'I don't like this state, stop payment'. No way. It can't happen that way. The system is well placed.”

It is believed Karnataka deputy CM D.K. Shivakumar and the Congress' state unit -- including all MLAs, MLCs and MPs -- will protest against the Centre on February 7 in New Delhi for not allocating it proper funds in the interim Budget.

“Karnataka is the state that generates the second-highest tax in the country. It is sad our state gets a setback every time. For the last five years, the BJP government has ignored Karnataka. This is unfair,” Mr Shivakumar had said.