In Delhi protest, Siddaramaiah slams Centre's 'injustice' to Karnataka

New Delhi: Congress leaders from Karnataka led by Chief Minister Siddaramaiah staged a protest in New Delhi on Wednesday against the Centre’s “injustice” to the state in devolution of taxes.

Deputy CM DK Shivakumar, Congress Lok Sabha and Rajya Sabha members from Karnataka, MLCs and MLAs took part in the three-hour protest at Jantar Mantar.

Addressing a gathering of around 500 people, Siddaramaiah alleged that “injustice” has been meted out to Karnataka in tax devolution and grants-in-aid over the past few years.

He alleged that Karnataka lost Rs 1,87,867 crore since 2017-18 due to the Centre’s stepmotherly treatment towards the state.

Siddaramaiah said the protest was not against the BJP but the discrimination against Karnataka. “This is why I had written a letter to all the MPs of the BJP and the JD(S) asking them to participate in this agitation,” he said.

Dismissing the BJP’s allegation that the protest was aimed at creating a north-south divide, he said the Congress wants the country to be united but there should be no discrimination against the southern states.

Demanding that the Centre set right the losses caused to the state under the 15th Finance Commission, he said the formula used to devolve taxes to states, especially Karnataka, under the 14th Finance Commission was changed by the 15th panel. 

He said they would also submit a representation to the new finance commission for adopting the formula used by the previous panel. 

The CM said the reduction in the state’s share of central taxes from 4.71% in the 14th Finance Commission to 3.64% in the 15th Finance Commission has led to a loss of Rs 62,098 crore over five years. The implementation of GST, which was promised to be a boon, has turned into a bane due to the discontinuation of compensation in June 2022.

“This abrupt halt has crippled our fiscal health, making it a Herculean task to regain the tax collection growth rate of 15% that we once proudly maintained,” he said. 

Shivakumar said Karnataka ranks second in GST collection and is the biggest contributor to the country’s revenue. 

“We are asking for our rights, we are asking for our share. The Karnataka government had sought drought relief funds from the Centre but not even a single rupee was given,” he said.

Incidentally, CPI(M) veteran and Kerala Chief Minister Pinarayi Vijayan and his Cabinet colleagues will stage a protest in the national capital against the Centre’s alleged negligence towards the southern state on February 8.

Elsewhere, in Kolkata, TMC supremo and West Bengal Chief Minister Mamata Banerjee will stage a protest on Friday against the Centre for allegedly withholding her state’s dues, particularly under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).