Union govt doing injustice to state causing loss of `12K cr annually: CM
Chief Minister Siddaramaiah has presented a budget of `4.09 lakh crore on Friday, expressing his dissatisfaction with the central government’s policies during his nearly three-and-a-half-hour-long budget speech.
Bengaluru: Chief Minister Siddaramaiah has presented a budget of `4.09 lakh crore on Friday, expressing his dissatisfaction with the central government’s policies during his nearly three-and-a-half-hour-long budget speech. He criticized the central government’s “malafide” approach, stating that it has resulted in injustices toward the state. Siddaramaiah pointed out that changes in the Goods and Services Tax (GST) distribution formula are causing the state to incur an annual loss of approximately `12,000 crore.
Throughout his address, Siddaramaiah highlighted multiple grievances against the central government, reiterating that the state has been unjustly treated in terms of tax allocation. He expressed disappointment that the central government has failed to fully compensate the state for the revenue losses incurred due to the implementation of GST. “The allocation of cess and surcharges in taxation has overlooked Karnataka’s interests. According to the recommendations of the 15th Finance Commission, the state’s share of taxes has been reduced, pushing Karnataka into financial challenges,” he lamented during his budget speech.
Siddaramaiah further elaborated that the 14th Finance Commission had set Karnataka’s share of central taxes at 4.713%, but the 15th Finance Commission has lowered it to 3.647%, leading to an estimated revenue loss of `12,000 crore for the state annually. To address this reduction, the 15th Finance Commission recommended a special grant of `11,495 crore to Karnataka, but the Chief Minister expressed his frustration that the central government has not provided this funding.
He also criticized the central budget for FY 2023-24, which announced `5,300 crore for the Bhadra Upper Project, stating that the funds have yet to be released. In commenting on the Jal Jeevan Mission scheme, Siddaramaiah mentioned that Karnataka was supposed to receive ` 3,800 crore from the central government in 2024-25, but only `571 crore has been released so far.
Siddaramaiah’s remarks solidify the tensions between Karnataka and the central government, as he calls for more equitable treatment and support for the state in financial matters.
