Siddaramaiah reminds PM Modi of ‘CM Modi’s words’ to bolster fiscal injustice protest by Karnataka

The Karnataka chief minister brought up the times Modi, as Gujarat chief minister, put forth demands similar to what Karnataka is making now.

BySouth First Desk

Published Feb 09, 2024 | 7:00 AMUpdatedFeb 09, 2024 | 7:00 AM

Siddaramaiah addresses the Chalo Dilli campaign in New Delhi.

Karnataka Chief Minister Siddaramaiah on Thursday sought to use Prime Minister Narendra Modi’s own words against him to bolster the southern state’s protests against the perceived fiscal injustice meted out to it.

As part of a lengthy post on X (formerly Twitter), Siddaramaiah noted that the prime minister had deemed the Chalo Dilli campaign “a threat to the nation’s unity and security”, and said he found it surprising.

He also shared images with the text “Yes prime minister! This is your own words [sic]” to drive home the point.

The Congress leader raked up remarks by Modi when he was the chief minister of Gujarat, highlighting how he used them to target the UPA regime at the Centre and rise through the ranks of the BJP to become the prime minister in 2014.

He then turned around and asked: “Weren’t your statements back then also seen as potentially endangering the nation’s unity and security?”

South tax movement: Why is Karnataka protesting against Union govt fiscal injustice?

The instances

The Karnataka chief minister said in the X post: “Narendra Modi expressed his concerns regarding the Central Finance Commission at various events during his tenure as the Chief Minister of Gujarat. [sic]”

He noted that in a statement issued on 6 December 6, 2012, “CM Modi questioned the return on Gujarat’s significant financial contributions” to the Union government.

He quoted Modi as saying: “Gujarat is giving ₹60,000 crore to the Union Government, how much of this has come back to us? Is Gujarat a beggar state? [sic]”

Siddaramaiah also noted that at a function in Vadodara in 2008, Modi remarked on Gujarat’s substantial tax payments to the Centre: “Gujarat contributed ₹40,000 crore annually to the Union Government in taxes. However, only a mere 2.5% of this sum was being allocated back to the state. Instead of receiving such a paltry amount in return, why not permit us to utilise our own taxes for at least a year? [sic]”

He then harkened back at the 10th Pravasi Bharatiya Diwas convention on 9 January, 2012, saying Modi — amidst distinguished foreign dignitaries — openly expressed his dismay at the Union government’s lack of assistance.

He again quoted the then Gujarat chief minister as saying, “We receive no support from the Union Government or the Prime Minister. We’ve solely depended on our own resources. [sic]”

Siddaramaiah also said: “During discussions with the 14th Finance Commission, Modi emphasised the need for a more equitable approach, urging the Union Government to allocate a larger portion, ideally between 32 to 50%, of the taxes collected from the states back to them. [sic]”

He said Modi argued before the Finance Commission that the criteria for tax allocation be revised to provide greater incentives to states demonstrating effective financial management and developmental efforts.

“Modi asserted the necessity of reforming the current tax allocation system, which disproportionately rewards underperforming states at the expense of those excelling in fiscal management. He advocated for incentivising states that have significantly contributed to infrastructure development and national progress [sic],” said Siddaramaiah.

“Wasn’t this stance in opposition to the Union Government?” he asked.

Also Read: ‘My tax, my right’ says Karnataka Congress in Delhi protest

On Central agencies and policies

The Karnataka chief minister also noted that Modi, as the chief minister of Gujarat, criticised the Union government for allegedly exploiting agencies like the CBI for its benefit and penalising adversaries.

He said the prime minister now denounces those questioning the credibility of the CBI, ED, and the Income Tax Department as “anti-nationals”.

He noted: “During the implementation of the Foreign Direct Investment (FDI) Act by the UPA government, Modi, a vocal opponent, mocked that ‘foreigners would eventually control even the trade of essential commodities like salt and spices.’ He expressed apprehension that FDI would lead to unemployment among small shop owners and those in the manufacturing sector. [sic]”

Siddaramiah also said on X that when the rupee was plummeting against the dollar, Modi humorously remarked that the UPA government and the rupee seemed to competing to see who was falling faster.

“Despite previously warning about the adverse effects of rising petrol prices on the people of Gujarat, Modi, after becoming the Prime Minister, continued to raise petrol prices even as crude oil prices declined. This decision inflicted hardships not only on Gujaratis but on citizens across the nation,” said the Karnataka chief minister.

He also noted that Modi “vehemently opposed the Aadhaar card, dismissing it as a mere political ploy with no long-term viability”.

However, upon becoming prime minister, Modi reversed his stance and became a fervent advocate for Aadhaar, said Siddaramaiah.

Also read: Karnataka to seek South Indian voice in 16th Finance Commission

The protest in Delhi

Siddaramaiah on Wednesday led a protest of Karnataka’s Congress lawmakers at Jantar Mantar in Delhi against “fiscal injustice” being meted out to the state.

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

He said: “All 34 ministers are among 135 MLAs and 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.”

He added: “The Union government has done us injustice in sharing of taxes. Because of this, Karnataka has suffered losses of ₹1.87 lakh crore in the last five to six years. This protest is against this injustice.”

Meanwhile, BJP leaders like Union Finance Minister Nirmala Sitharaman and Bengaluru South MP Tejasvi Surya have been slamming the protest.

Sitharaman on Wednesday lashed out at the Congress government in Karnataka, accusing it of harbouring a “separatist” mindset and spreading a “false narrative” on the issue of fund allocation by the Union government to states.

The same day, Tejasvi Surya blamed the Congress government in the state for announcing pre-poll guarantees without budgeting for them.

The guarantees were instrumental in the Congress romping to a victory in Karnataka in the Assembly elections held in May last year.

A similar set of guarantees helped the party topple the BRS in Telangana in the Assembly elections held last year on 30 November.