Experts, activists demand formula-based allocation of State govt. grants in Budget; govt. says it will be ‘need based’

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The State authorities  has repeatedly said that it would usage  its grants to bring parity betwixt  the corporations.

The State authorities has repeatedly said that it would usage its grants to bring parity betwixt the corporations. | Photo Credit: K. MURALI KUMAR

As preparations statesman for the State Budget for 2026-27, apt to beryllium presented successful mid-February, it is being keenly watched arsenic to however the superior grants from the State authorities volition beryllium allocated betwixt the 5 metropolis corporations successful Bengaluru.

This is the archetypal Budget aft the city’s governance has been restructured. While municipality experts and activists person been advocating for a formula-based organisation of funds mounting a bully precedent successful the archetypal twelvemonth itself, the State authorities volition apt spell for a discretionary ad-hoc allocation.

The 5 metropolis corporations person a wide variance successful their gross procreation imaginable with the East Corporation expected to make ₹912 crore and the North Corporation expected to make ₹543 crore. The State authorities has repeatedly said that it would usage its grants to bring parity betwixt the corporations. However, determination is nary factual reply connected what ground these allotments would beryllium made isolated from ‘more grants to corporations with little gross and little to corporations which person a amended spot taxation base’.

A elder authoritative said that the allocations to the assorted metropolis corporations volition beryllium ‘need based’, taking into relationship pending, ongoing, and projected caller projects.

Clause dropped

The Brand Bengaluru Committee successful its draught of the Greater Bengaluru Governance Bill submitted to the State authorities successful July 2024, provided for a Finance Advisory Committee to the Greater Bengaluru Authority (GBA) ‘to assistance the corporations go financially sustainable and to marque recommendations regarding however further State grants-in-aid are to beryllium distributed betwixt the Municipal Corporations’. However, this proviso was dropped successful the Greater Bengaluru Governance Act, 2024.

Formula-based allocation request of the hour

Srikanth Vishwanathan, CEO, Janaagraha Centre for Citizenship and Democracy, said, “A discretionary process, neither anchored successful information nor successful the dependable of citizens, would beryllium self-defeating. The GBA should enactment successful spot a basal scaffolding this twelvemonth itself.” 

Many person besides argued for years present that the State should besides devolve taxes to the section bodies based connected a look and the metropolis should get a share, nevertheless small, of Goods and Services Taxes, Entertainment Tax, Motor Vehicle Tax and Stamps and Registration revenue, generated successful the city.  

N.S. Mukunda of Bengaluru Praja Vedike, advocated for processing a ward level scale accounting for infrastructure and quality improvement indices, to usher allocation some from the State authorities to the 5 corporations and wrong these corporations to wards arsenic well. “After we person elected councils successful these corporations, we volition invariably get into situations wherever the State authorities and a peculiar corp volition person opposing parties successful power, and determination volition beryllium allegations of partisanship. A enactment trying to perpetuate this strategy contiguous for immoderate abbreviated word gains volition besides beryllium astatine its receiving extremity successful the future. In the process, the metropolis volition suffer,” helium said. 

Bengaluru NavaNirmana Party, gearing up to combat the upcoming civic polls successful the city, has besides demanded for a formula-based allocation that is transparent arsenic well. “We request a formula-based allocation, an autarkic committee of experts to get astatine the look and for the full process to beryllium transparent,” said Srikanth Narasimhan of the party.

Published - January 04, 2026 08:30 p.m. IST

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