Karnataka Congress legislators, led by Chief Minister Siddaramaiah, held a protest at Jantar Mantar in New Delhi on February 7 over alleged 'financial injustice' from the Union government.
Siddaramaiah said the state lost Rs 1.87 lakh crore during the last five years under the 15th Finance Commission.
"Karnataka is the second-highest in the country in tax collection after Maharashtra. Karnataka contributes Rs 4.3 lakh crore annually as tax. If we collect Rs 100 as tax and give it to the Union government, we get just Rs 12-13 as our share," said Siddaramaiah.
He said that the protest aims to highlight the step-motherly treatment of the Union government and also to protect the interests of Kannadigas.
Injustice to Karnataka in tax devolution, loss of over Rs 45,000 crore in 4 years: Siddaramaiah
"Due to uncontrolled population in the north, taxes are now distributed more to the northern states with higher populations. Karnataka and other southern states, which managed to control their populations are now bearing the brunt. For instance, UP gets more than 2 lakh crore a year, but Karnataka, the second-biggest contributor, is getting less than Rs 44,000 crore a year. We have lost more than Rs 59,000 crore to other non-deserving states." said Siddaramaiah.
He said, "I expected JDS and BJP to participate in this protest due to the discrimination faced by Southern states, particularly Karnataka, at the hands of the Union government."
"In the 2023-24 budget speech, the Union Finance Minister Nirmala Sitharaman had announced Rs 5,300 crore for the Upper Bhadra project. However, the Union government hasn't released any funds. In Raichur, the Union government had promised to set up AIIMS. I even wrote two letters inquiring about the status of the project. But they haven't responded to date," said Siddaramaiah.
Deputy CM DK Shivakumar said the protest in Delhi aims to highlight the injustice meted out to the state. "We have the responsibility for the welfare of the state. Around 190 taluks of the state are facing severe droughts, and 223 have declared drought. How do we manage?"
"Even during the double-engine government, when Basavaraj Bommai was the CM of Karnataka, FM Nirmala Sitharaman had promised more funds, but it never materialised," said Shivakumar.
"We are here fighting for the state, as Karnataka is suffering from drought. We have requested the Centre for a special grant for drought relief. But not one rupee has been released to Karnataka," said Shivakumar.
The protest comes close on the heels of the Lok Sabha polls in which the Congress wanted to highlight the injustice by the Union government.
However, BJP leaders, including Nirmala Sitharaman, dismissed these allegations stating that it is a politically biased narrative by vested interests.
Separately, BJP Karnataka MPs held a protest in front of the Gandhi statue in Parliament, alleging misuse of funds by the Karnataka government.
Meanwhile, the Kerala government is also planning a similar protest in Delhi on February 8, highlighting the Centre’s alleged biased fiscal policies towards the national capital, with Tamil Nadu lending its voice of support.
Population, GST lie in the heart of India’s North, South money wars over central funds
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
