Karnataka Chief Minister Siddaramaiah Intensifies Criticism of Central Government Over Financial Issues
In a strong rebuke during the assembly session, Karnataka Chief Minister Siddaramaiah has once again accused the central government of systematically ignoring the state's legitimate financial demands. Speaking during the discussion on the motion of thanks to the governor's address, Siddaramaiah highlighted what he termed as "grave injustices" meted out to Karnataka by the Union government.
Centre's Collection of Cess and Surcharges Under Fire
Siddaramaiah pointed out that despite Karnataka repeatedly flagging the issue to the 16th Finance Commission, Sunday's Union Budget failed to address the critical demand of treating cess and surcharges collected from the state as part of the divisible pool. "The Centre collected a staggering Rs 6 lakh crore in cess and surcharges, but not one paisa was shared with states," the Chief Minister stated emphatically.
Massive Revenue Losses Detailed
The Chief Minister provided detailed figures to substantiate his claims of financial neglect:
- Karnataka's annual loss from GST revenue since 2022 has been approximately Rs 18,000-20,000 crore
- This amounts to a cumulative loss of Rs 75,000-80,000 crore over four years
- The state was denied Rs 11,495 crore recommended by the 14th Finance Commission
- Karnataka's share in devolution fell from 4.7% under the 14th Finance Commission to 3.6% under the 15th
- This reduction resulted in a loss of Rs 1.2 lakh crore over five years
Siddaramaiah highlighted the disparity in tax contributions versus returns, noting that while Karnataka paid Rs 4.5 lakh crore in taxes, it received only Rs 55,000-60,000 crore in return.
GST Reduction Linked to Bihar Elections
The Chief Minister made a significant allegation regarding GST collections, claiming that "the central government collected higher GST for eight years and then suddenly reduced it because of the Bihar election." He asserted that this move cost Karnataka Rs 12,000-15,000 crore in GST revenue, directly affecting seven crore Kannadigas.
Criticism of Governor's Conduct
Siddaramaiah also directed criticism toward Governor Thaawar Chand Gehlot, alleging that he left the House in haste without reading the full address prepared by the council of ministers. "The governor is basically a good person," Siddaramaiah clarified, "We are not against him, we are against the central government."
He emphasized that Article 176 mandates the governor to read the speech, and Gehlot's failure to do so prevented the people of Karnataka from learning about the injustices perpetrated by the Centre. The Chief Minister noted that the governor did not mention "Jai Samvidhan" and left before the national anthem.
Media Criticism of Governor's Behavior
Referring to editorials in several newspapers, Siddaramaiah mentioned that they had criticized the governor's behavior, calling it "unbefitting" and a "historic blemish" on the session. He insisted that the government's speech contained no unconstitutional words and focused solely on highlighting the injustices from the Centre.
Defense Against Price Hike Allegations
Addressing allegations of price hikes, Siddaramaiah defended his government's record, stating that excise duty, stamp duty, registration fees, and taxes on petrol and diesel in Karnataka are lower compared to other states. "Even though there have been price revisions in the budget over the past three years, the increase is significantly lower compared to other states," he asserted. "The allegation of excessive taxation is far from the truth."
The Chief Minister called upon all state representatives to question what he described as the systematic funding cuts to Karnataka, emphasizing the need for equitable treatment of states in the federal structure.
