Ahead of the 16th Central Finance Commission, Karnataka Chief Minister Siddaramaiah on Wednesday said that he will strongly demand to increase the tax share during the commission’s meeting.
“Grievances regarding the injustices faced by Karnataka under the 15th Finance Commission will be detailed in the meeting. Karnataka has been one of the most neglected states and there will be a strong demand to increase the tax share from 41 per cent to 50 per cent,” the Chief Minister said.
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The 16th Central Finance Commission is scheduled for Thursday (August 29).
He said that the Centre is indifferent towards the southern state and the people must raise a voice against this injustice.
“We are raising the issue of discrimination against Karnataka and other southern states of India by Centre. We must voice our concerns against this injustice. We are not advocating for weakening the federal structure but we are against the injustice,” the Chief Minister said.
He said that the state will also insist that a portion of the revenue from cesses and surcharges should be allocated to the states.
“It will be emphasised to the chairman of the Finance Commission that while cesses and surcharges have been increasing, the tax allocation to the state has been decreasing,” the Chief Minister said.
Siddaramaiah had earlier urged the Central government to change the criterion for the 16th Finance Commission concerning the allotment of tax money to states.
He made this plea while addressing a protest at Jantar Mantar in New Delhi organised by the Karnataka government, highlighting the alleged injustice to Karnataka in the Interim Budget in February 2024.
Siddaramaiah had emphasised the need for the central government to release the Rs 1.87 lakh crore loss incurred by the state since 2014.
Under the devolution of taxes, Karnataka was initially given a 4.71 per cent share, which subsequently decreased to 3.64 per cent. This reduction resulted in a 1.07 per cent loss, amounting to Rs 62,098 crore for the state in tax devolution.
“Should we not protest against this injustice? The 15th Finance Commission considered the 2011 Census,” the Chief Minister said.
He said that North Indian states did not control population growth, while South Indian states did.
“Consequently, the population of North India increased, and that of South India decreased. Unfortunately, controlling population growth turned out to be a curse for us. I am not suggesting that poorer Indian states should not be allocated more funds,” the Chief Minister said.
