New Delhi: Amidst a backdrop of heightened tensions, Chief Minister Siddaramaiah alongside Congress leaders from Karnataka took to the streets of New Delhi, staging a vociferous protest at Jantar Mantar.
Their grievances centered on what they perceived as “injustice” in tax devolution and grants-in-aid from the Central government. However, their outcry was swiftly met with a robust rebuttal from Finance Minister Nirmala Sitharaman, who adamantly defended the government’s stance, asserting that she had meticulously adhered to the recommendations of the Finance Commission.
In a spirited address to the Lok Sabha, Sitharaman meticulously presented figures, drawing a stark comparison between the allocations under the UPA government and the current BJP-led administration. She emphatically refuted claims of Karnataka being shortchanged, highlighting that the state had received a substantial interest-free loan amounting to ₹6,280 crore over 50 years. Sitharaman further underscored that Karnataka’s share of taxes had seen a significant uptick, with projections indicating continued financial support through the 15th Finance Commission.
I want to assure this House, whatever the Finance Commission has recommended, I follow it to the last word.
In 13th Finance Commission for period 2010-11 to 2014-15, Karnataka received Rs 61,691 crores.
In 14th Finance Commission for period 2015-16 to 2019-20, Karnataka… pic.twitter.com/nPNnfY99Jy— Nirmala Sitharaman Office (@nsitharamanoffc) February 7, 2024
Addressing the disparity in grants-in-aid, Sitharaman juxtaposed the figures from the UPA era with those under the Modi government, demonstrating a notable increase in allocations. She highlighted additional grants earmarked for Karnataka in the current fiscal year, reinforcing the government’s commitment to equitable distribution of funds.
Meanwhile, at Jantar Mantar, Chief Minister Siddaramaiah and other Congress leaders vocalized their grievances, decrying what they perceived as discrimination against Karnataka and other southern states by the Centre. Deputy Chief Minister DK Shivakumar echoed these sentiments, emphasizing Karnataka’s substantial contributions to GST collections and national revenue while lamenting the alleged neglect in receiving due relief funds.
In essence, the contentious issue revolving around financial allocations sparked heated debates both in the hallowed halls of the Lok Sabha and on the streets of New Delhi, underscoring the ongoing tug-of-war between the state and Central governments over fiscal matters.
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