Karnataka faces Rs 59,274 crore loss over 7 years due to faulty GST implementation, claims CM SIddaramaiah
During the Karnataka Legislative Assembly's Budget presentation, CM Siddaramaiah criticized the central government over GST, citing a loss of Rs 59,274 crore for Karnataka due to unmet revenue projections. The opposition, led by R Ashok, accused him of politicizing the Budget. BJP boycotted, alleging bias towards big businesses.
FollowIn the Karnataka Legislative Assembly, during the presentation of the 2024 State Budget, Chief Minister Siddaramaiah's criticism of the central government sparked intense backlash from opposition parties. The Leader of the Opposition, R Ashok, questioned the CM's decision to use the Budget as a platform to critique the Centre, igniting a contentious atmosphere within the assembly.
The Budget's unveiling shed light on a longstanding issue regarding the Goods and Services Tax (GST) implementation, further fueling the discord. CM accused the Central of implementing unscientific GST in the Nation which has resulted the Karnataka state incurring losses of over Rs 59,274 crore.
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He revealed that the GST, introduced by the central government, fell short of its promised growth rate of 14%, resulting in a significant deficit in revenue collection for Karnataka. Despite assurances of compensation to states for revenue shortfalls, the actual collection amounted to only a fraction of the projected amount, leaving Karnataka with a substantial loss over the past seven years.
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The disparity in GST collection prompted murmurs of discontent among assembly members, highlighting the contentious nature of the issue. The BJP, in particular, vehemently opposed the Budget, with members boycotting the session and staging a walkout.Â
CM Siddaramaiah defended the Budget, emphasizing the state government's commitment to implementing progressive policies aimed at improving the lives of citizens. He rejected the claims of financial instability, citing the successful implementation of various guarantee schemes designed to uplift the populace. However, his critique of the central government's alleged bias towards big businesses incited further fury among BJP members.
