Karnataka Chief Minister Siddaramaiah said the state may move to court if necessary to get its rightful share of central grants. He also criticised the Centre over GST rationalisation, saying Karnataka bears the losses.
Mysuru: Karnataka Chief Minister Siddaramaiah on Friday expressed strong concerns over the state not receiving its rightful share of central funds and warned that the state may approach the courts if necessary to secure the money.
Speaking to reporters in Mysuru, Siddaramaiah criticised the Centre over the celebration of the Goods and Services Tax (GST) rationalisation, calling it
“little to celebrate after eight years of introduction of GST in the country.”
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Pointing out the discrepancy in fund allocation, he said,
“UP is getting 17 to 18 per cent of the central grant while we are getting only 3.5 per cent. Is this justified? We are asking them (Centre) to rectify it.”
Siddaramaiah highlighted that Karnataka contributes around Rs 4.5 lakh crore in taxes to the Centre every year but receives only 14 per cent in return, calling it “not proper.”
He added,
“I am not saying the state should withhold money from the Centre. My point is that the Centre should collect it in a justified manner,”
The Chief Minister accused the Centre of deliberately denying Karnataka its due share, referring to the 15th Finance Commission recommendations.
He said,
“Further, the 15th Finance Commission had recommended Rs 4,590 crore for Karnataka, which was not given to us. Besides it, Rs 6,000 crore, Rs 3,000 for lake rejuvenation, Rs 3,000 crore for peripheral ring road around Bengaluru and Rs 5,400 crore for upper Bhadra scheme were also denied to us. Isn’t this intentional?”
Siddaramaiah further noted that Karnataka was supposed to receive Rs 11,490 crore, along with an additional Rs 5,000 crore, which have not been released. Regarding potential legal action, he said,
“If needed, we will go to court to get the money.”
Commenting on the ‘GST Utsav’ being organised by BJP leaders, Siddaramaiah expressed his scepticism.
He questioned,
“After rationalisation, will the Centre refund whatever tax it had collected in the last eight years? What is there to pat in the back?”
He also alleged that the GST rates were revised with upcoming assembly elections in Bihar in mind. Siddaramaiah warned that the rationalisation of taxes would hurt states financially, not the Centre.
He explained,
“We will incur Rs 15,000 crore loss annually. Look at the situation we are in. We cannot oppose the rationalisation. We have to welcome it and we are the ones who will be at loss,”
On the ongoing caste census in Karnataka, Siddaramaiah informed that over three crore people have already been surveyed till Thursday, covering more than 80 per cent of households.
He expressed hope that the survey would be completed by October 7, saying,
“Let’s see. I hope that the process will be completed by October 7.”
Addressing allegations from some Hindutva organisations claiming that the survey is aimed at aiding religious conversions, Siddaramaiah clarified,
“We are not doing caste survey. We are doing socio-economic and educational survey. How is this going to create rift between castes?”
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He also questioned why BJP leaders were not opposing the caste census ordered by the Centre.
Karnataka’s Chief Minister’s remarks come amid growing concerns over central fund allocations, GST rationalisation, and the socio-economic survey, highlighting the state government’s insistence on ensuring fairness and transparency in fund distribution and governance.
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