Both Tax Devolution and Grants Reduced to Karnataka, Alleges CM Siddaramaiah
By : m.b. girish
Update: 2024-02-05 16:15 GMT
BENGALURU: Expressing ire against the Central Government, Chief Minister Siddaramaiah said on Monday that he is seriously considering presenting a ‘White Paper’ on tax devolution and grants received from the Central Government on the floor of the Assembly. He accused the Bharatiya Janata Party (BJP) led Central Government of meting out ‘injustice’ to Karnataka in its tax share and the release of grants for the Centrally sponsored schemes, which has been decreasing over the years.
Siddaramaiah accused the Central Government of not responding to the letters of the State Government and questioned whether it is a federal system, adding, “Is it not step-motherly treatment?”
Reiterating that members of both Houses would stage a protest at Jantar Mantar in New Delhi on Wednesday at 11 am over ‘injustice’ to Karnataka, Siddaramaiah, holding the Finance portfolio, stated at a press conference in Bengaluru that he is backed by documents from the Central Government. According to the documents, he stated that while Karnataka got 4.71 percent of the tax share in the 14th Finance Commission, it came down to 3.64 percent in the 15th Finance Commission, resulting in a loss of about Rs 62,000 crore in tax share.
The Chief Minister mentioned that normally, the census of 1971 was considered by previous Finance Commissions for tax devolution, but the 15th Finance Commission considered the 2011 census report. He highlighted that the population of a state is one of the six parameters fixed for tax devolution.
While the Central budget size increased from 2017-18 when compared to 2023-24, Siddaramaiah said that the share for Karnataka decreased. He stated that Karnataka received 2.2 percent from tax devolution and grants in 2017-18, which came down to 1.23 percent in 2024-25.
Pointing fingers at the Central Government over the non-release of funds to Karnataka to tackle drought, the Chief Minister said that in September last year, 223 taluks of the state are reeling under drought, and 196 of them are severely affected by drought this season. However, the Central Government hasn’t released funds to tackle drought relief despite repeated appeals.
As per the assessment made, the Chief Minister mentioned that the crop loss has been estimated at about Rs 35,000 crore, while the State had sought relief of Rs 17,901 crore from the Central Government, but not a single paisa has been released to Karnataka from the National Disaster Relief Fund (NDRF).
Regarding the protest in New Delhi, the Chief Minister said that staging protests is to draw the attention of the Central Government and the nation to the ‘injustice’ meted out to Karnataka. Deputy Chief Minister D.K. Shivakumar was present.
Reiterating that members of both Houses would stage a protest at Jantar Mantar in New Delhi on Wednesday at 11 am over ‘injustice’ to Karnataka, Siddaramaiah, holding the Finance portfolio, stated at a press conference in Bengaluru that he is backed by documents from the Central Government. According to the documents, he stated that while Karnataka got 4.71 percent of the tax share in the 14th Finance Commission, it came down to 3.64 percent in the 15th Finance Commission, resulting in a loss of about Rs 62,000 crore in tax share.
The Chief Minister mentioned that normally, the census of 1971 was considered by previous Finance Commissions for tax devolution, but the 15th Finance Commission considered the 2011 census report. He highlighted that the population of a state is one of the six parameters fixed for tax devolution.
While the Central budget size increased from 2017-18 when compared to 2023-24, Siddaramaiah said that the share for Karnataka decreased. He stated that Karnataka received 2.2 percent from tax devolution and grants in 2017-18, which came down to 1.23 percent in 2024-25.
Pointing fingers at the Central Government over the non-release of funds to Karnataka to tackle drought, the Chief Minister said that in September last year, 223 taluks of the state are reeling under drought, and 196 of them are severely affected by drought this season. However, the Central Government hasn’t released funds to tackle drought relief despite repeated appeals.
As per the assessment made, the Chief Minister mentioned that the crop loss has been estimated at about Rs 35,000 crore, while the State had sought relief of Rs 17,901 crore from the Central Government, but not a single paisa has been released to Karnataka from the National Disaster Relief Fund (NDRF).
Regarding the protest in New Delhi, the Chief Minister said that staging protests is to draw the attention of the Central Government and the nation to the ‘injustice’ meted out to Karnataka. Deputy Chief Minister D.K. Shivakumar was present.