Karnataka invites eight states to discuss ‘unfair’ devolution

Bengaluru: Karnataka Chief Minister Siddaramaiah has written to his counterparts in eight states, including three where the BJP is in power, inviting them for a conclave in Bengaluru to discuss fiscal federalism.

Siddaramaiah has reached out to chief ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Punjab, Haryana, Maharashtra and Gujarat. The last three states have the BJP in government.

In a statement, Siddaramaiah said he has written to these states about “unfair devolution of taxes” by the Union government.

“I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift & create incentives for growth & better tax mobilisation,” Siddaramaiah said.

.Fiscal concerns of Opposition-ruled states to echo at Kerala conclave. The CM said that states with higher GSDP per capita, like Karnataka and others, are being penalized for their economic performance, receiving disproportionately lower tax allocations. “This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive states,” he said.

The government is yet to finalise the dates for the Bengaluru conclave.

In his letter to chief ministers, Siddaramaiah said there was “an urgent need” to balance equity with efficiency and performance. “It is, therefore, important that states which are receiving smaller shares in horizontal devolution, compared to their contributions to the Gross Tax Revenues of Union, need to articulate a coordinated set of proposals before the Commission,” he argued.

Meanwhile, Kerala is hosting four states - Karnataka, Tamil Nadu, Telangana and Punjab - to discuss the 16th Finance Commission on September 12.

Karnataka invites eight states to discuss ‘unfair’ devolution

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