BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget
Bengaluru: Chief Minister Siddaramaiah pointed out that Central Government led by Bharatiya Janata Party (BJP) had meted out three injustices to States including Karnataka such as “unscientific” implementation of Goods and Services Tax, increase in Cesses and Surcharges and change in allocation of formula in tax devolution and grants-in-aid, adversely affected the financial strength of the State.
Siddaramaiah accused the previous State Government in Karnataka led by Bharatiya Janata Party (BJP) had “lackadaisical” attitude which led to Karnataka face huge financial losses in the final report of the 15 Finance Commission and alleged that the BJP government in the State failed to initiate steps to rectify the “injustice” meted out to the State in the interim report of the 15th Finance Commission applicable for the financial year 2020-21.
In his budget presentation, the Chief Minister holding Finance portfolio pointed out that the change in the method of calculation of State’s income and consideration of the 2011 census instead of 1971 led to heavy loss to progressive states such as Karnataka.
Had the allocation formula proposed by the 14th Finance Commission been continued, Chief Minister the State would have received Rs 2, 77, 350 crore as tax devolution instead Karnataka got Rs 2, 15, 253 crore and the loss incurred of Rs 62, 098 crore.
The Chief Minister termed the implementation of Goods and Services Tax (GST) as “unscientific” implementation in the country which has made Karnataka to incur a loss of Rs 59, 274 crore for the last seven years of its implementation.
Continuing on GST implementation, Siddaramaiah explained the Central Government led by BJP at the time of GST implementation had assured there would be 14 percent growth and States would be compensated in case of shortage in revenue growth. It was estimated that GST tax collection would be Rs 4, 92, 296 crore from 2017 to 2023-24 but only 3, 26, 764 crore GST revenue was collected. He said against the GST shortfall of Rs 1, 65, 532 crore, the Central Government had released Rs 1, 06, 258 crore as compensation to the State.
Siddaramaiah noted that Cesses and Surcharges levied on fuel among others collected by the Central Government are increasing and the same is not being shared with the States and owing to non-sharing of Cesses and Surcharges by the Central Government, Karnataka suffered a loss of Rs 45, 322 crore in the last seven years.