K’taka govt seeks justice in tax devolution & fiscal federalism

Bengaluru: Karnataka government has placed its legitimate and constitutionally grounded demands before the 16th Finance Commission, seeking justice in tax devolution and fiscal federalism, stated Chief Minister Siddaramaiah.

The government has also released posters in this regard and launched a campaign seeking justice for the state.

Siddaramaiah stated, "Through this campaign - ‘JUSTICE FOR KARNATAKA, FAIR SHARE, STRONG FEDERALISM’ - the Government has released nine posters, each highlighting a key demand placed before the Finance Commission."

He said that these include restoring Karnataka’s fair tax share; correcting unjust income, population and GSDP criteria; ensuring fair disaster and ecological support; strengthening decentralisation; providing dedicated infrastructure support for Bengaluru; supporting backward regions like Kalyana Karnataka; and upholding the constitutional spirit of cooperative federalism.

This initiative is aimed at informing citizens, placing facts on record, and building public awareness on why fair tax sharing is not a favour, but a right. Karnataka seeks only what is due - justice, fairness, and respect within India’s federal framework, CM Siddaramaiah underlined.

"We hope that the 16th Finance Commission reflects these concerns fairly in its recommendations, and that the Union Government under Prime Minister Narendra Modi implements them in letter and spirit, without subjecting Karnataka to petty politics or discrimination, as has unfortunately happened in the past," he said.

He said that Karnataka is among the country’s highest contributors to national revenues, yet its share in tax devolution was earlier reduced from 4.71 per cent to 3.64 per cent, causing a loss of nearly Rs 80,000 crore.

He added that flawed formulas that penalise development and population control, unrealistic GSDP calculations, inadequate disaster support, unchecked cesses and surcharges, denial of GST compensation, and non-release of recommended grants have collectively weakened the state’s finances.