K'taka vs Centre: We lost Rs 1.87 L cr during 15th Fin Commission, says CM

New Delhi: Stepping up the attack on the NDA government over the issue of tax devolution, Karnataka Chief Minister Siddaramaiah on Monday said the state has incurred a total loss of Rs 1.87 lakh crore during five years under the 15th finance commission due to declining Central grants and urged that they be set right.

Also, clarifying he or his government were not against the Centre giving more funds to northern states that are "poor" or lacking development, he said all that they want is injustice should not be done to states like Karnataka.

The government was mulling over tabling a "white paper"on the state's finances, during the upcoming Budget session of the legislature, he told a press conference here.

Referring to the February 7 protest announced by the the Congress government in Karnataka and the party in New Delhi, he said it was to attract the attention of the central government and the people of the country.

"So far we had never staged a protest in Delhi, but due to unavoidable reasons, a situation has come for us to stage the protest," the CM said.

The CM detailed the alleged losses Karnataka has suffered over the years due to decline in tax devolution and grants-in aid from the Centre.

Pointing out at the federal structure of the country and that the taxes collected from the states go to the Centre, he said in the 14th Finance Commission, tax devolution to states from the central divisible pool was 42 per cent, and in the 15th Finance Commission, which was formed in 2015- 16 after Narendra Modi became Prime Minister, reduced to 41 per cent.

Karnataka's share in tax devolution fell from 4.71 percent of total taxes under the 14th Finance Commission to 3.64 per cent in the subsequent one, which is a decrease of 1.07 per cent, he said.

"In the last four years since the 15th Finance Commission came, the loss from the tax devolution alone is about Rs 45,000 crore".

Total loss in five years on account of recommendations of the 15th Finance Commission is to the tune of Rs 62,098 crore, by including the estimates for this year too, he added.

Incidentally Karnataka's claim that the Centre is not releasing funds due to it was raised in the Lok Sabha earlier today by Congress' Adhir Ranjan Chaudhury.

Responding, Sitharaman said such a situation cannot happen as the "system is well placed" and the central government works according to recommendations of the Finance Commission.

The total loss to the state from tax devolution under 15th Finance Commission and rejection of special grants is about Rs 73,593 crore, Siddaramaiah added.

Further, he said the state is still facing losses from the GST, with the compensation from the centre being stopped.Rs 4.30 lakh crore tax gets collected from Karnataka, and the state is second in the country after Maharashtra in tax collection.

It received a total of Rs 50,257 crore this year from tax share and as grants for centrally sponsored scheme.

"Which means, to say, out of Rs 100 sent to centre from Karnataka, the state gets back only Rs 12-13; the rest remains with the centre."

Further noting that the state government has submitted a memorandum to the Centre regarding the severe drought situation in the state, Siddaramaiah said, the crop loss is to the ture of Rs 35,000 crore, and Karnataka has requested the Centre to release Rs 17,901 crore from National Disaster Response Fund (NDRF).

It has not received any relief so far. (PTI)