CM Siddaramaiah leads protest against fiscal injustice in Delhi; ‘to protect interests of Kannadigas,’ he says

The protest held at the Jantar Mantar in Delhi was attended by the 135 MLAs including Minister Priyank Kharge and Dy CM DK Shivakumar.

BySouth First Desk

Published Feb 07, 2024 | 12:37 PMUpdatedFeb 07, 2024 | 1:49 PM

Chief Minister Siddaramaiah at the protest in Jantar Mantar in Delhi

Karnataka Chief Minister Siddaramaiah led the protest against “fiscal injustice” being meted out to the state, at Jantar Mantar in Delhi on Wednesday, 7 February.

Taking the state tax movement to the doorsteps of the Union government in Delhi, the chief minister called it a “historic campaign for the welfare of Karnataka, meant to protect the interests of Kannadigas”.

Speaking to the media before the protests, Siddaramaiah said it wasn’t a political move but an apolitical campaign to protect the interest of Karnataka.

State tax movement on fiscal injustice

The chief minister said: “Today we are compelled to stage a protest at the historic Jantar Mantar in Delhi. All 34 ministers are among 135 MLAs, MLCs who are participating in this protest. This is not a political movement. It is apolitical. It is to protect the interests of Karnataka and Kannadigas.”

“The Union government has done us injustice in sharing of taxes. Because of this, Karnataka has suffered losses of ₹1,87,000 crore in the last 5-6 years. This protest is against this injustice,” he added.

Reacting to a question on the participation of Opposition parties, Siddaramiah said, “I have invited the Opposition MPs and MLAs to participate as well. But I don’t know if they will join.”

Also Read: Reasons why Karnataka is protesting against Union government

Siddaramaiah explains loss of revenue to Karnataka

Explaining the problem with the sharing of tax revenue, Siddaramaiah said: “In the 14th Finance Commission, our share of tax was 4.71 percent. In the 15th Finance Commission, it was reduced to 3.64 percent. This led to the loss of 40-45 percent of funds. Had we followed the 14th Finance Commission yardstick, we would have received ₹62,098 crore.”

He added, “The size of the government of India budget in 2018-19 was approx ₹24.42 lakh crore and Karnataka received ₹51,000 crore then.”

The chief minister further questioned: “In 2023-2024 the government of India’s budget size is ₹45 lakh crore. Now, after 5 years, Karnataka has received only ₹ 50, 250 crore. Is that not injustice?”

Criticising the BJP, Siddaramaiah said: “They don’t speak about the size of the budget. They only say that tax distribution has increased. The government of India’s budget has almost doubled in five years. Shouldn’t our tax share also increase to ₹1 lakh crore? That’s why it is an injustice to Karnataka.”

Divulging more details on the tax shares, the chief minister said: “In the financial year 2014-15, Cess & Surcharge was ₹1,42,000 crore. This year alone, that is 2023-2024, the government of India is collecting ₹5,52,000 crore.”

He added: “States don’t get a share from this. It doesn’t come to a divisible pool of taxes. We don’t get any funds from there, and the whole money goes to the Union government. We are asking for a share in that too. We would have received ₹ 55,000 crore if these funds were shared with states. Is this not an injustice?”

Missing drought relief

Speaking to reporters, he added, “Even after meeting the prime minister and Union ministers over the drought relief fund, the Union government is yet to respond and has not released a single penny.”

Siddaramaiah added: “Our Cabinet ministers also met the Union ministers and requested to increase MGNREGA working days from 100 to 150 days due to severe drought in the state. The state is yet to receive a response from the Union government.”

Speaking to ANI at the protest site, Karnataka Minister Priyank Kharge said they are in Delhi to protect the rights of the Kannadigas and Karnataka.

“The drought relief, and MGNREGA man-days that need to be increased are few of our main demands, apart from tax devolution,” he said.

Responding to a question, the minister said that investigative agencies like the ED (Enforcement Directorate) and IT (Income Tax Department) are star campaigners for the BJP and not independent agencies.

Also Read: Karnataka BJP MPs decline Siddaramaiah’s invite to join protest

The protest was attended by all the Congress MLAs from Karnataka including Deputy Chief Minister DK Shivakumar.

Also Read: ‘Tukde-tukde gang’ says BJP IT cell chief Amit Malviya on Karnataka’s claims