ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Pranay KotasthaneSubscribe to Pranay Kotasthane

Karnataka's Changing Fiscal Landscape

Analysing the second Karnataka budget since the Fourteenth Finance Commission award, it is noted that, as assured, more fiscal space is made available to the state government. With greater untied funds, the state has budgeted for higher capital expenditure in some key areas--urban development, police, and tribal welfare--even as it failed to build capacity for power generation, and has introduced too many schemes with too little funds allocated to each.

Impact of Fourteenth Finance Commission

This article identifies the Karnataka government's responses and adjustments to the Fourteenth Finance Commission as a result of changes in the tied,untied and overall transfers from the union government. It also highlights the impact of restructuring of union grants on Karnataka's allocations. It argues that there is now renewed impetus on the states to have larger control over their desired fiscal direction, priorities and areas of improvement.
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