Karnataka Assembly Passes Two Resolutions Asking Centre To Frame Legislation on MSP
Bengaluru: The Karnataka Assembly passed two resolutions urging the Central Government to initiate steps to take a strong stand on equal distribution and non-discriminatory allocation of financial resources and to frame legislation on fixation of minimum support price for all crops.
While moving the resolution over equal distribution and non-discriminatory allocation of financial resources, Minister for Law and Parliamentary Affairs H.K. Patil moved the resolutions and stated that Karnataka being the second highest tax payer State in the country, it has lost Rs 62, 098 crore during the 15th Finance Commission period from 2020-21 to 2025-26 and pointed out that the 14th Finance Commission allotted Karnataka 4.713 percent of tax distribution but the 15 Finance Commission recommended only 3.647 tax allocation resulting in huge loss to the State.
The Central Government collects revenue not only from Goods and Services Tax but also from Cesses and Surcharges levied on fuels and others. The Cesses and Surcharges collected by the Central Government are not distributed among the States and owing to non-distribution of Cesses and Surcharges, Karnataka lost an estimated Rs 45,322 crore from 2017-18 to 2023-24.
Continuing, the Minister pointed out that the grants provided for centrally sponsored schemes have also been reduced substantially while the Central budget size has been doubled in 2023-24 to 2018-19. But, there is no commensurate increase in aid from the Central Government to Karnataka.
Stating that the Karnataka strongly condemned “injustice” and “financial” damage due to “unscientific” GST system, lessened tax share because of imposition of Cesses and Surcharges, non-distribution of special and State-centric grants as recommended by the 15th Finance Commission, the Minister said that Karnataka recorded a loss of Rs 1,78,189 crore from 2017-18 onwards.
Another resolution passed in the Assembly was asking the Central Government to frame legislation on fixation of minimum support price for all crops.
The Minister said in recent years, the actions of the Central Government have resulted as “anti-farmer” policies and have created a situation where farmers do not get minimum support price.
By studying the conditions of farmers, Dr M.S. Swaminathan reported that the Governments have neither made any progress nor have brought any changes in achieving the ‘Green Revolution’ by announcing a minimum support price of 50 percent of a farmer’s cost of cultivation.
In view of these factors, the Minister urged the Central Government to fulfil demands of farmers without resorting to conflicts with the farmers.
