Leader of the Opposition in the Legislative Assembly and former Chief Minister Siddaramaiah on Thursday criticised the Narendra Modi-led government for reducing Karnataka’s share in the devolution of taxes and said the Centre had been perpetrating injustice to the State which ranked third in collection of taxes in the country after Maharashtra and Delhi.
In 2019–20, Karnataka was expected to receive ₹17,249 crore as Goods and Services Tax (GST) compensation, but the State received only ₹8,815 crore, said the Congress leader.
Speaking on the motion of thanks to the Governor’s address in the Assembly, Mr. Siddaramaiah said the Centre’s funds to the State would reduce by over ₹11,000 crore in 2020–21 as per the 15th Finance Commission’s allocation.
“In 2019–20, Karnataka received devolution from the Centre amounting to ₹39,591 crore. For the 2020–21 fiscal, Karnataka is receiving ₹28,598 crore. If this continues, then in the next five years, we will lose close to ₹60,000 crore. How do you develop the State then? Instead of increasing, the amount is decreasing every year. How will Karnataka see a balanced development then?” Mr. Siddaramaiah said.
‘No political will’
The former Chief Minister accused the Yediyurappa-led government of lack of political will to oppose the Centre’s decisions. He said States such as Uttar Pradesh, Bihar, and Gujarat would be be receiving more funds when compared with their contribution to the Centre’s pool. “We are not getting back what we are giving. Where do we stand? All Ministers in the government must know this. Is this not injustice for our State? We have not fought for our rights politically and this lack of political will has brought us to this state,” he said.
“Many Finance Commissions have said that owing to more population in those States, they will get more allocation. But Gujarat is a fairly developed State. Why should they get more money now?” he asked.
Karnataka had not received GST compensation and money for rehabilitation of flood victims. Though there are 25 BJP MPs in the State, they have not met Prime Minister Narendra Modi and sought higher compensation for the flood-affected areas, he said.
