Reiterating that the protests are not political, Shivakumar said, "We are not doing politics on feelings but doing this for life.”
CM Siddaramaiah addressing the protest in Jantar Mantar. (Supplied)
Calling his government’s protest, demanding rightful share of taxes, a ‘social movement’, Karnataka Chief Minister Siddaramaiah said the whole state was united.
Led by Siddaramaiah, the Karnataka government protested at Jantar Mantar in Delhi against the Union government’s “Fiscal injustice” on Wednesday 7 February.
Karnataka Congress MLAs, ministers, including the Deputy Chief Minister DK Shivakumar were part of the protest that pushed for “my tax, my right” campaign.
Speaking at the protest, DK Shivakumar said the elected representatives were there on behalf of the people of Karnataka.
Calling the Jantar Mantar a historic place, the chief minister said, “The intention of this protest is to draw the attention of the Union government and people of this country to the injustice that has happened to us.”
Reiterating that the protests are not political, Siddaramaiah said, “This is not Congress protesting against the BJP. I am making it very clear. That is why, I had written a letter to all the BJP and JD(S) MPs to participate in this agitation.”
Siddaramaiah said, “I expected them to participate. They should have taken part. We are raising the issue of discrimination meted out by the Government of India to Karnataka and other southern states.”
Shivakumar also claimed that the protests are not political, he said, “We are not doing politics on emotions but doing this for livelihood and ideology.”
“Our blood, our sweat, our tax and our right. Justice for Karnataka. We stand here to ask for our fair share of taxes. Hundreds of thousands of people are expressing support to our protest,” the deputy chief minister said, expressing gratitude to all the MLAs, MLCs and MPs turning up for the protest.
Shivakumar said: “We have gathered here to provide justice to the poor and those who are finding it difficult to manage their day-to-day basic requirements like food demands in the midst of severe drought.”
He further said: “I will only ask them to provide our share in the tax. Karnataka is the second-largest contributor of revenue to the country. We are asking for our share, our rights.”
The deputy chief minister further questioned Union Finance Minister Nirmala Sitharaman, who is a Rajya Sabha MP from Karnataka. “Sitharaman said that the Union government does not have any powers. It all depends on the Finance Commission. Then why should there be a government?”
“I agree. It is an autonomous body but when there has been discrimination, it has to be addressed. It is the duty of the Government of India,” reiterated the deputy chief minister.
Speaking of the Finance Commission, Siddaramiah said: “In this country, the Finance Commission is constituted so that the Union and state governments meet their expenses and manage their responsibility. This is done as per the provisions of the Constitution in the 7th schedule.”
Explaining further about the Finance Commission, he said, “How to devolve tax collected in the country? How much is the share of centre, state, and union territories? To decide that, once every five years, the Finance Commission will be set up. A total of 15 Finance Commissions have given the report so far. Now, the 16th Finance Commission has been set up.”
Pointing out that the protests are to strengthen the federal structures, Siddaramaiah said, “The constitution has clearly stated to share the collected tax among the states and centre. This has been mentioned in the 7th schedule of the Constitution,”
Siddaramaiah said: “In the 14th Finance Commission, which existed from 2015 to 2016, they had given the report. As per their report, in the tax devolution, 42 percent was to the states and 58 percent was to the Union. Under the devolution of taxes, 4.71 percent had to come to Karnataka.”
He further elaborated, “In the 15th Finance Commission, it was reduced from 42 percent to 41 percent. Karnataka’s tax share was reduced from 4.71 percent to 3.64 percent. This means that 1.07 percent was reduced.”
People of Karnataka will make the best of this social movement to oust those who have betrayed them.#MyTaxMyRight pic.twitter.com/JV2mwXYAfh
— Siddaramaiah (@siddaramaiah) February 7, 2024
Expressing concerns about considering the 2011 census in the 15th Finance Commission, Siddaramiah said, “Based on the 1971 census population, tax used to be devolved till the 14th Finance Commission. But in the 15th finance commission, sidelining the 1971 census, the 2011 census was taken into consideration.”
He continued: “In the 7th schedule—population, area, forest per capita income, communities development has been kept as guidelines to fix the tax devolution. Several northern states did not control population. Whereas Southern states have controlled population.”
He added, “Hence, the population increased in the north but was reduced in the south. Population control has turned out to be a bane to us. We don’t tell them not to give more share to poor states. We don’t have any qualms about giving more share to the undeveloped states, we won’t oppose it.”
“But we argue that it is not appropriate to slit the goose that lays the golden egg. We are protesting against this and not against giving more to Northern states. For example, Uttar Pradesh gets ₹2.80 lakh crore in tax share, whereas Karnataka gets ₹50,257 crore,” pointed Siddaramaiah.
He added: “But Karnataka ranks second highest in tax collection, GST and income tax collection, customs duty, cess and surcharge after Maharashtra. Why this injustice to us? Is this not an injustice to Karnataka? As a matter of fact, this year, Karnataka is contributing more than ₹4.30 lakh crore in taxes to the centre.”
“If we collect ₹100 tax and give it to the centre, we get only ₹12 to ₹13 in return as our share. Is it not an injustice caused to the people of Karnataka?” asked Siddaramaiah.
He pointed out: “After 4.71 percent was reduced to 3.64 percent, Karnataka has lost ₹62,098 crores in the devolution of taxes till 2025-26. Is it, not injustice caused to Karnataka?”
This injustice is deliberate and the silence of @BJP4Karnataka leaders is disheartening. Receiving just Rs 12 for every Rs 100 is nothing but exploitation.#MyTaxMyRight pic.twitter.com/q1GKmFahd3
— Siddaramaiah (@siddaramaiah) February 7, 2024
“I want to bring it to your notice that the BJP is claiming that they have given more tax to the state in the 15th Finance Commission compared to the 14th Finance Commission. Importantly, they won’t talk about how much was the size of the budget then and now,” charged Siddaramaiah.
He further said: “In 2017-18, the union government’s budget size was ₹21, 46, 235 lakh crore. We used to get ₹31,908 crore in tax share. There will be centrally sponsored schemes, where centre and state share the cost.”
Elaborating on the shared costs, the chief minister said, “For example, under the Pradhan Mantri Awas Yojana, the centre will pay ₹1.2 lakh and the state will also provide ₹1.2 lakh. But the name is only for the Prime Minister. In such central sponsored schemes, the projects will be carried out on a cost-sharing basis.”
Stating the numbers, the chief minister said, “Karnataka got ₹47,590 crore in 2017-18. In 2018-19, tax devolution was ₹36,215 crore, in grants ₹14,942 crore— a total of ₹51,157 crore. In 2019-20, in tax devolution 39,806 crore, and in grants 18,008 crore— a total of Rs 54,816 crore. The budget size was ₹27,86,349 crore.”
“Why I am pointing this out is because then the budget size was smaller. Despite We got ₹51,000 crore in 2018-19 when the budget size was ₹24 lakh crore,” highlighted the CM.
He added: “In 2023-24 the budget size is ₹45 lakh crore. It is twice as big when compared to 2018-19. We should have received twice as much tax shares too. If the budget size has doubled then should the tax share not double?”
“In 2023-24 we got ₹50,250 crore. It is less than what we received in 2018-19. Is this not an injustice to Karnataka, the people of Karnataka? Should we not protest? So, this is the position,” Siddaramaiah hit out at the Modi government.
Siddaramaiah said: “GST was implemented unscientifically. We told them about this. We are not against the GST but our appeal is that it should be done scientifically. The union government assured the states in the GST council meeting that they would bear all the loss while implementing it.”
“We had 15 percent tax growth, where the national average was 14 percent. They said they would give 14 percent, and we agreed. They gave it for five years; They stopped giving compensation in June 2022.”
“Now, in 2022-23 and 2023-24, due to not giving compensation, the state suffered a loss to the tune of ₹59,000 crores. Is it not an injustice? The centre has stopped GST compensation,” pointed out the CM.
He said: “After the GST was implemented, the tax growth has slipped down to 9 percent. We have incurred a loss due to GST. Their statement that the state would get more revenue has turned out to be false. We suffered a loss. We could not get ₹59,000 crore because of GST. Hence, we are protesting against this injustice.”
Stating that they accept criticism happily in a democracy, the deputy chief minister referring to the Opposition BJP said, “26 people have been elected. Not even a single day, they protested, they did not even meet the prime minister once in the interest of the state. You said double engine government but it failed.”
“Not even a single day did they ask about our share. Not even when the chief minister took you (to the prime minister), you didn’t even utter a word. In such a situation, you don’t have any moral right to protest in front of the Gandhi statue (in Vidhan Soudha in Bengaluru),” Shivakumar charged against the BJP.
Taking a dig at the BJP, Siddaramaiah said: “The BJP leaders dance to the tunes of Prime Minister Narendra Modi. They did not utter a word. After the tax share was reduced, the 15th Finance Commission in its interim report recommended special grants of ₹5,495 crore to Karnataka in 2020-21.”
“I have raised several issues about this in the assembly, urging (the then CM) BS Yediyurappa to write a letter and meet the Union Ministers concerned to get our share. It is not a small amount. In the 15th finance commission, they said that they would provide ₹3,000 crore for peripheral ring road development, ₹3,000 crore for water bodies development.”
“A total of ₹6,000 crore was promised, and an additional special grant of ₹5,495 crores— both put together to a total of ₹11,495 crore,” Siddaramaiah lashed out for not adhering to the finance commission recommendations.
Hitting out at the Union Finance Minister, Siddaramaiah said: “Our Finance Minister Nirmala Sitharaman has said that the 15th Finance Commission is an autonomous organisation. We don’t want to interfere. Why did you not provide the grants, if you claim that you won’t interfere? You said you would not interfere, why will you lie in the parliament?”
Firing a series of questions at the Union finance minister, Siddaramaiah asked, “A total of ₹11,495 crore grants was refused by none other than Finance Minister Nirmala Sitharaman. In the parliament, she says that she does not want to interfere with the report of the finance commission since it’s an autonomous body. Why would you lie? Why did you refuse? Is it a small amount?”
He added: “It is refused by our finance minister and she is representing Karnataka. I would like to ask another question to Yediyurappa and Bommai. When the 15th Finance Commission visited Karnataka, Siddaramaiah was the CM. We have efficiently presented our argument before the commission.”
He added, “But who constituted the commission? Who will appoint the members for the commission? It is none other than Prime Minister Narendra Modi. There was not even a single member from the South in the commission. Hence, we were meted out injustice.”
“It is not Siddaramaiah, who is responsible. It is the Government of India and it is none other than PM Narendra Modi who is responsible for the fiscal injustice to Karnataka. Truth should be known. It is impossible to bury the truth, Yediyurappa and Bommai. These are all facts. I am quoting all the figures and documents from their budget,” fumed Siddaramaiah.
He further said: “I would like to say that BJP and its leaders are deceiving the people of Karnataka. This is the hard truth based on facts. Anybody can verify.”
“In the last nearly one decade, Karnataka has lost over ₹1,87,789 lakh crore. Should we not protect the interests of Kannadigas and Karnataka? Is it not our duty? That’s why we are protesting,” questioned the CM.
Siddaramaiah also hit out at the Modi government for not releasing a single rupee to take up drought relief works despite submitting a memorandum in person to the Prime Minister and Union Minister.
Shivakumar further questioned the previous “double engine government”, “I would like to point out that when the double engine government was there, Nirmala Sitharaman promised various grants to Karnataka.”
“But even after one year, not even a single rupee has been given for railways, irrigation or any of our issues,” highlighted Shivakumar.
Recalling Sitharaman’s budget speech, Shivakumar said: “Water for drought-prone region was promised. They said, in drought-prone centre region of Karnataka, central assistance of ₹5,300 crores will be given to the Upper Bhadra Project for sustainable micro irrigation and drinking water.”
“Why has this not been implemented? Why was a single rupee not given? This isn’t a big question. People of this country have voted for you and MPs have voted for you. But you still have not done any justice to us. I request you to please provide justice to us,” Shivakumar urged the Union finance minister.
May 15, 2024
May 15, 2024
May 15, 2024
May 15, 2024
May 14, 2024
May 14, 2024
