'Karnataka faces loss of over ₹45,000 crore due to reduced tax devolution': CM Siddaramaiah

Karnataka CM Siddaramaiah alleged injustice by Centre with reduction in tax devolution, resulting in loss of over ₹45,000 crore to state in four years.

Karnataka Chief Minister Siddaramaiah on Sunday alleged “injustice” to the southern state by the Central leadership over a reduction in tax devolution, which he claimed has given way to a loss of more than ₹45,000 crore to the state in the last four years.

Karnataka CM Siddaramaiah. (ANI Photo)

Tax devolution is the distribution of tax net proceeds from the centre to states as per recommendations from the finance commission. In this light, CM Siddaramaiah said the taxes paid by the people of Karnataka were not directed back to the state in its “difficult times” and were instead being allocated to northern states.

The senior Congress leader took to social media and said, “Karnataka has faced significant challenges with a reduced tax devolution share post the 15th Finance Commission, resulting in a loss of over ₹45,000 crore in the last 4 years. This injustice cannot stand.”

"We stand united in demanding fair treatment and justice for Kannadigas to secure our state's welfare," he wrote, adding the hashtag "#SouthTaxMovement" in the post on micro-blogging site ‘X’, formerly Twitter.

These statements come in the backdrop of major discontent brewing amongst state Congress leaders after the interim budget announcement by Union Finance Minister Nirmala Sitharaman, which has prompted a protest in the national capital on Wednesday.

“I fully support the #Nannaterigenannahhakku Twitter campaign by Kannadigas to condemn the injustice being done to Karnataka by the central government in tax distribution. The northern states, which are indebted to taxes paid by southern states, can never be a model for us. Everyone should get over this false idea. Karnataka, which is building a strong nation with hard work, is a model for India,” He wrote in a separate post.

“My thanks to the intellectuals of the country who have raised their voice for justice. I am with you, if all our voices are united, it will be heard till Delhi,” he added.