Chief Minister Siddaramaiah has alleged that the recent decision of the Centre to increase the devolution of its taxes to States by 10 per cent, in tune with the recommendation by the 14th Finance Commission, had been neutralised by the huge reduction of funds for Centrally-sponsored projects in the budget.
He said the Central allocation to the education sector had reduced by Rs. 32,912 crore and to housing schemes for poor by Rs. 14,887 crore. This will increase financial burden on States, he said.
