‘PM Modi is a threat to federal system’: Karnataka CM Siddaramaiah alleges fiscal injustice

Siddaramaiah mentioned that Modi had said that the UPA government was a threat to the federal economy when he was the CM of Gujarat.

Published Feb 21, 2024 | 8:20 PMUpdated Feb 21, 2024 | 8:21 PM

CM Siddaramaiah presenting his 15th State Budget

Karnataka Chief Minister Siddaramaiah on Wednesday, 21 February, said Prime Minister Narendra Modi was a threat to the federal system.

He was replying to the debate on the Karnataka Governor’s address in the Legislative Council, explaining the “injustice” being done by the Union government to the state.

Following his remark, a heated argument broke out between members of the ruling dispensation and the Opposition.

Also Read: Tax the rich and spend on poor is our economics: Karnataka CM

Questions on PM Modi remarks

Siddaramaiah mentioned that Modi had said during a BJP working committee meeting, when he was the chief minister of Gujarat, that the UPA government was a threat to the federal economy.

“Modi, when he was chief minister of Gujarat, had said ‘we are not beggars’ and demanded 50 percent of the taxes to be returned. He has also said that Gujarat would not give its taxes to the Union government,” said the chief minister.

“The same Modi, who is now the prime minister, is allocating only 12-13 percent of the taxes (to Karnataka). He is saying one thing then and something else now. Why are you angry if I mention this?” he asked.

Siddaramaiah also claimed that the state’s development was not possible with the low tax share that was being provided now.

“How will a state progress if we are given only ₹12 for every ₹100 that we give? If we are given a very small share, how can the development of the state’s Shudras, Dalits, Adivasis, labourers, youth, and women happen?” he further asked.

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Compares allocation over the years

The chief minister also delved into a comparison between the Union budget and the funds allocated to Karnataka over the years and said even after the increased outlay of the Union budget, the state’s share was diminishing.

“When the size of the budget was ₹24,44,213 crore in 2018-19, we got ₹51,000 crore. In the year 2020-21, the Union budget size was ₹30,42,243 crore, and we received ₹31,734 crore. The Union budget for the year 2021-22 was ₹34,83,236 crore and the state got ₹48,589 crore. The Centre’s budget for the year 2022-23 was ₹41,81,232 crore. The state received only ₹53,510 crore,” he said.

“In the year 2023-24, the Centre’s budget size is ₹45,03,007 crore. Only ₹50,257 crore was received by the state,” he added.

“The prime minister, while replying to the debate on the President’s address, targeted the state’s tax protest and said it would ‘threaten the unity of the country’. The same prime minister had opposed the economic share of Gujarat in 2012 when he was the chief minister,” said Siddaramaiah.

“He (Modi) had said: ‘Are we beggars, should we live on the mercy of the Centre?’ Modi had also said, ‘Don’t collect tax from Gujarat, we will use it for ourselves’,” he added, asking the prime minister whether his speech in the past was against the unity of the country.

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‘Insult to President’

He told the BJP members of the House, “Give back our money that should come from the Union government and I will salute you a crore times.”

Responding to that, Leader of the Opposition in the Legislative Council Kota Srinivas Poojari said, “We don’t want your Koti Namaskaras,” and accused the chief minister of addressing the prime minister and the President singularly.

Meanwhile, Siddaramaiah said that he used the singular by slip of the tongue and expressed regret.

However, he slammed the BJP over not inviting President Droupadi Murmu to the inauguration of the new Parliament building, and said that it was an insult to the President and the country’s highest post.

“Is it not an insult to President Droupadi Murmu and the post of President, not being invited to the inauguration of the new Parliament?” he asked.

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