My Tax-My Right issue: Karnataka minister Priyank Kharge accuses Centre of slashing state's tax allocation resulting in losses
It is to be noted that CM Siddaramiah will be leading a protest against the Union Government in Delhi on February 7 (Wednesday) against what the state terms is step-motherly treatment to it by the Centre.
- Feb 7, 2024,
- Updated Feb 7, 2024 11:31 AM IST
Days after Union Finance Minister Nirmala Sitharaman rubbished claims that the non-BJP states are being deprived of their legitimate tax and GST dues, Priyank Kharge, Karnataka Minister for Rural Development, Panchayati Raj and Information Technology, said that despite Karnataka generating Rs 4.3 lakh crore through various taxes, yet it receives only 12%-13% of its entitled share from the BJP government.
Earlier this week, the Karnataka government accused the Centre of injustice with a reduction in tax devolution. Chief Minister Siddaramaiah said due to the reduction in tax devolution, the state has suffered a loss of over Rs 45,000 crore in the last four years.
He claimed that the taxes paid by Kannadigas were not useful for the state's difficult times, and the money was going to northern states.
Devolution to the states happens in direct tax matters, as per the recommendations given by the finance commission. Speaking on the same issue, Kharge said under the 14th Finance Commission, Karnataka's allocation was around 4.71%. This was slashed to 3.65% in the 15th Finance Commission, resulting in a loss of Rs 73,593 crore.
"Annually, Karnataka generates $4.3 lakh Cr through various taxes, yet it receives only 12%-13% of its entitled share from the BJP government. Under the 14th Finance Commission, our allocation stood at 4.71%, but it plummeted to 3.65% in the 15th Finance Commission, resulting in a loss of 73,593 crore. Despite representing Karnataka in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman dismissed the interim report of the 15th Finance Commission, which proposed a special grant of 25,459 crore to compensate Karnataka for its tax devolution shortfall. Will the BJP answer why was the proposal for compensation dropped," Kharge wrote on social media platform X on Wednesday.
It is to be noted that CM Siddaramiah will be leading a protest against the Union Government in Delhi on February 7 (Wednesday) against what the state terms is step-motherly treatment to it by the Centre.
"Karnataka has faced significant challenges with a reduced tax devolution share post the 15th Finance Commission, resulting in a loss of over Rs 45,000 crore in the last 4 years. This injustice cannot stand," Siddaramaiah said on Sunday.
Siddaramaiah called his government’s ‘Chalo Delhi’ protest as the first-ever by Karnataka against the fiscal policies of the Centre.
In the Lok sabha, Congress leader Adhir Ranjan Chowdhury said there is a general perception across the nation that the non-BJP states are being deprived of their legitimate dues. The latest example, he alleged, is the Congress-ruled Karnataka.
Replying to Chowdhury, FM Sitharaman said: “Adhir ji, please understand I don’t have the right to change as per my whims and fancies, that I like a state or another state, it is against my party politics. No way, I have no role. I would have to follow rules 100 per cent, and that’s what I have done.”
On just Karnataka, the Kerala government will stage a protest on Thursday to highlight “how the BJP-led government is neglecting the state by denying its due share of revenue in violation of principles of cooperative federalism”. The Kerala government has stated there has been a fall of Rs 57,400 crore in state’s receipts from the Centre, a shortfall of Rs 12,000 crore in GST compensation, another cut of Rs 8,400 crore in this year’s revenue deficit grant, and a fall in Kerala’s eligible borrowing limit to Rs 28,830 crore from the Rs 39,626 crore it expected.
The Kerala government has accused the Centre of “slashing the state’s borrowing limit”, an issue on which it has also moved the Supreme Court.
The Tamil Nadu government, which has supported the Kerala government, has accused the Centre of exploiting its powers under Article 293 of the Constitution to severely limit the borrowing capacity of states.
Also read: Congress MP D K Suresh Defends His “Separate Nation” Remark After PM Modi’s Attack
Days after Union Finance Minister Nirmala Sitharaman rubbished claims that the non-BJP states are being deprived of their legitimate tax and GST dues, Priyank Kharge, Karnataka Minister for Rural Development, Panchayati Raj and Information Technology, said that despite Karnataka generating Rs 4.3 lakh crore through various taxes, yet it receives only 12%-13% of its entitled share from the BJP government.
Earlier this week, the Karnataka government accused the Centre of injustice with a reduction in tax devolution. Chief Minister Siddaramaiah said due to the reduction in tax devolution, the state has suffered a loss of over Rs 45,000 crore in the last four years.
He claimed that the taxes paid by Kannadigas were not useful for the state's difficult times, and the money was going to northern states.
Devolution to the states happens in direct tax matters, as per the recommendations given by the finance commission. Speaking on the same issue, Kharge said under the 14th Finance Commission, Karnataka's allocation was around 4.71%. This was slashed to 3.65% in the 15th Finance Commission, resulting in a loss of Rs 73,593 crore.
"Annually, Karnataka generates $4.3 lakh Cr through various taxes, yet it receives only 12%-13% of its entitled share from the BJP government. Under the 14th Finance Commission, our allocation stood at 4.71%, but it plummeted to 3.65% in the 15th Finance Commission, resulting in a loss of 73,593 crore. Despite representing Karnataka in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman dismissed the interim report of the 15th Finance Commission, which proposed a special grant of 25,459 crore to compensate Karnataka for its tax devolution shortfall. Will the BJP answer why was the proposal for compensation dropped," Kharge wrote on social media platform X on Wednesday.
It is to be noted that CM Siddaramiah will be leading a protest against the Union Government in Delhi on February 7 (Wednesday) against what the state terms is step-motherly treatment to it by the Centre.
"Karnataka has faced significant challenges with a reduced tax devolution share post the 15th Finance Commission, resulting in a loss of over Rs 45,000 crore in the last 4 years. This injustice cannot stand," Siddaramaiah said on Sunday.
Siddaramaiah called his government’s ‘Chalo Delhi’ protest as the first-ever by Karnataka against the fiscal policies of the Centre.
In the Lok sabha, Congress leader Adhir Ranjan Chowdhury said there is a general perception across the nation that the non-BJP states are being deprived of their legitimate dues. The latest example, he alleged, is the Congress-ruled Karnataka.
Replying to Chowdhury, FM Sitharaman said: “Adhir ji, please understand I don’t have the right to change as per my whims and fancies, that I like a state or another state, it is against my party politics. No way, I have no role. I would have to follow rules 100 per cent, and that’s what I have done.”
On just Karnataka, the Kerala government will stage a protest on Thursday to highlight “how the BJP-led government is neglecting the state by denying its due share of revenue in violation of principles of cooperative federalism”. The Kerala government has stated there has been a fall of Rs 57,400 crore in state’s receipts from the Centre, a shortfall of Rs 12,000 crore in GST compensation, another cut of Rs 8,400 crore in this year’s revenue deficit grant, and a fall in Kerala’s eligible borrowing limit to Rs 28,830 crore from the Rs 39,626 crore it expected.
The Kerala government has accused the Centre of “slashing the state’s borrowing limit”, an issue on which it has also moved the Supreme Court.
The Tamil Nadu government, which has supported the Kerala government, has accused the Centre of exploiting its powers under Article 293 of the Constitution to severely limit the borrowing capacity of states.
Also read: Congress MP D K Suresh Defends His “Separate Nation” Remark After PM Modi’s Attack