Bengaluru Siddaramaiah’s budget on Friday launched a scathing attack on the Bharatiya Janata Party-led Union government, accusing it of discrimination in devolution of funds.
“The collection of cess and surcharges for 2023-24 has increased by 153%… If cesses and surcharges are shared with the states, a total of ₹11,34,301 crore was available for devolution for all states. Due to non-sharing of cesses and surcharges by the Union government, the state suffered a loss of ₹45,322 crore in the last seven years,” he said.
The CM blamed the Centre’s “unscientific implementation of GST" for the losses.
“Unscientific implementation of GST, increase in cesses and surcharges and change in allocation formula- these three injustices meted out by the central government coupled with the short release of funds to the states have adversely affected the financial strength of all the states of the country. As the ruling party in several states are same as that in the Centre, these states are unable to raise their voice against the injustices meted out against them.”
He further alleged that the state suffered staggering losses due to changes in the method of calculating state income and the use of the 2011 census instead of the 1971 census, resulting in a shortfall of ₹62,098 crore under the devolution of Central Taxes over six years.
Furthermore, despite the 15th Finance Commission’s recommendations for special grants and development funds, totalling ₹11,495 crore, the central government rejected these proposals, exacerbating Karnataka’s financial strain. This rejection highlights a trend of the central government withholding crucial funds from progressive states, prompting Siddaramaiah’s government to take a stand against such injustices.
{{/usCountry}}Furthermore, despite the 15th Finance Commission’s recommendations for special grants and development funds, totalling ₹11,495 crore, the central government rejected these proposals, exacerbating Karnataka’s financial strain. This rejection highlights a trend of the central government withholding crucial funds from progressive states, prompting Siddaramaiah’s government to take a stand against such injustices.
{{/usCountry}}“The 15th Finance Commission in its first report for 2020-21, recommended to provide ₹5,495 crore in special grants and ₹6,000 crore for the development of Bengaluru in the final report. However the central government has rejected these recommendations. Even though the previous government claimed the existence of a double-engine government in the state, it was incapable of obtaining ₹11,495 crore of special grants from the Centre,” he said.
The statement comes days after the chief minister and legislature party members held a protest in New Delhi against the Union government’s vendetta against the state in devolution of funds.
The CM also highlighted the progress made in infrastructure projects, such as the Bengaluru suburban rail project, under the Congress regime and blamed the Centre for delays in releasing grants for projects like the Upper Bhadra Project.
“The Central Government had announced grants of ₹5,300 crore for the implementation of Upper Bhadra Project in its 2023-24 Budget. However, no grant has been released so far. The previous State Government congratulated the Hon’ble Prime Minister in its Budget for Badhra Project to be declared as a National Project. However, this has been proved false as the Central Government has not yet declared the project as a national project,” he said.
Hitting back, former CM Basavaraj Bommai said the CM presented a political budget laced with a bundle of lies to “cover up his failures and also created a record of borrowing ₹1 lakh crore. “Whatever is expected from government of India...devolution of funds…it has come . If at all there is a shortage, it is a shortage of (collection) state’s own taxes efforts.”