Karnataka's Fiscal Fight: CM Siddaramaiah Challenges Central Funding Policies
Karnataka CM Siddaramaiah criticizes the central government's funding distribution, citing disparities in funds received compared to other states. He mentions possible legal action to secure Karnataka's due share. Siddaramaiah questions the motives behind GST revisions, linking them to upcoming elections and highlighting financial losses to states.
- Country:
- India
Karnataka Chief Minister Siddaramaiah has voiced strong criticism against the central government's approach to distributing funds, highlighting a significant discrepancy in the central grants received by his state compared to others.
Speaking to reporters, Siddaramaiah pointed to a stark imbalance where Karnataka receives approximately 3.5% of central grants despite contributing Rs 4.5 lakh crore in taxes, while Uttar Pradesh gets 17% to 18%. Siddaramaiah expressed concerns over the Centre's financial policies, hinting at possible court action to rectify the perceived inequities.
Further, he criticized the rationalization of GST rates, suggesting it was politically motivated ahead of Bihar's assembly elections. This move, he said, would result in substantial annual losses to states, with Karnataka alone facing a Rs 15,000 crore deficit.
(With inputs from agencies.)
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