CM: K'taka's money being used to reward 'corruption-ridden' states

NT Correspondent Bengaluru: Chief Minister Siddaramaiah on Saturday accused the Centre of doing injustice to Karnataka by allocating less funds to it in the tax devolution and said questions are needed to be raised about the state's hard-earned contributions being used to reward "misgoverned and corruption-ridden" states. Since Prime Minister Narendra Modi's government came to power, Karnataka has "suffered", the chief minister alleged, and stressed on the need to initiate a public debate on how Karnataka, while respecting the federal structure, can secure its rightful share. "The persistent injustice in tax distribution by the NDA government towards Karnataka is undeniable, with the latest tax share figures serving as clear evidence.

Out of a total of Rs 1,78,193 crore allocated to 28 states, Karnataka has been given a meagre Rs 6,498 crore. This gross injustice calls for every Kannadiga, irrespective of caste, religion, or political affiliation, to pledge to raise their voice against such discrimination," Siddaramaiah said. Let this Vijayadashami, a symbol of victory over injustice, mark the beginning of our collective fight for fairness, he said in a statement. Seeking to know what wrong has Karnataka done to deserve such neglect, the CM said, the question every proud Kannadiga must ask the central government is why the state's hard-earned contributions are being used to reward misgoverned and corruptionridden states. "Uttar Pradesh, infamous for its poor governance, has been allocated Rs 31,962 crore; Bihar, Rs 17,921 crore; Madhya Pradesh, Rs 13,987 crore; and Rajasthan, Rs 10,737 crore. Why should the sweat and toil of Karnataka fuel the growth of states that have lagged behind due to maladministration?" he questioned. Noting that despite contributing significantly to the nation's tax revenues, Karnataka receives only 3.64 per cent of the total tax share, far below the 17.93 per cent given for Uttar Pradesh, 10.05 per cent given for Bihar, 6.02 per cent given for Rajasthan, and 7.85 per cent given for Madhya Pradesh, Siddaramaiah said, the central government's discriminatory policies are evident in these figures. While Karnataka excels in governance and development, the financial rewards are directed towards poorly governed states, he said.Further he pointed out that the 14th Finance Commission set tax share Karnataka receives 4.713 per cent, but the 15th Finance Commission unjustly reduced it to 3.647 per cent, costing the state approximately Rs 62,275 crore between 2021-2026. Even when the Finance Commission recommended a special grant of Rs 5,495 crore to compensate for the loss, the central government refused to release the funds, further aggravating the injustice, Siddarmaiah said.

In total, Karnataka lost a staggering Rs 79,770 crore due to unfair tax distribution during this period, he said. Although Karnataka makes up only 5 per cent of India's population, it contributes 8.4 per cent to the nation's GDP, the CM said, the state ranks second in GST collection and leads the nation in GST growth with a 17 per cent increase. "However, Karnataka receives only 52 per cent of the GST it collects, losing Rs 59,274 crore since the introduction of GST."