CM slams Centre over GST cuts, calls them political gimmick ahead of Bihar polls

Update: 2025-10-04 10:54 IST

Chief Minister Siddaramaiah criticised the central government for reducing GST rates, calling it a self-congratulatory move aimed at political mileage ahead of the Bihar elections. He warned that the decision to simplify GST would cost Karnataka an estimated ₹15,000 crore in annual revenue loss.

Speaking to reporters at his Mysuru residence on Thursday, Siddaramaiah said, “In 2017, it was the Centre that introduced GST and fixed higher rates. Now, by reducing what they themselves increased, they are patting their own backs. For eight years, they collected more from the people—are they ready to return that excess amount?”

The CM also alleged that Karnataka has been unfairly treated in tax devolution and grants. While the state contributes nearly ₹4.5 lakh crore in taxes, it receives back only 14 paise per rupee. “The 15th Finance Commission had recommended special grants, including ₹5,490 crore general grants, ₹3,000 crore each for lakes and road development, and ₹5,000 crore for the

Bhadra Upper Bank project. Altogether, about ₹17,000 crore due to the state was denied. If necessary, as before, we will approach the courts to secure our rights,” he asserted.

On BJP MPs from Karnataka, he alleged they were more interested in praising Prime Minister Modi than safeguarding the state’s interests. “The Centre tailors GST compensation to suit NDA-ruled states, but Karnataka is unfairly penalized. Our MPs are silent,” he remarked.

Siddaramaiah also provided an update on the ongoing caste census, stating that surveys have been completed in around 80 lakh households covering nearly three crore people. He assured the exercise would be completed by October 7.

“This is an economic, social, and educational survey. It is not meant to divide people by caste or religion as the BJP falsely claims,” he said, accusing Union Minister Pralhad Joshi of misleading people for political purposes.

Responding to Leader of Opposition R. Ashoka’s remarks that the government is “as good as dead” if it cannot solve farmers’ issues, Siddaramaiah

dismissed them as politically motivated. “Ashoka speaks not as an independent leader, but under RSS directions. His allegations are purely political,” the CM retorted.

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