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Fact-check: Karnataka government should really blame UPA regime NOT Modi government for fund allocation

Karnataka Congress leaders, led by Chief Minister Siddaramaiah, have been protesting in Delhi to highlight disparities in tax contributions and returns, emphasizing losses incurred by Karnataka. However, the BJP is now pointing out that the decision to reduce Karnataka's share was made during the Congress-led UPA government

Fact check: Karnataka government should really blame UPA regime NOT Modi government for fund allocation
Author
First Published Feb 8, 2024, 4:24 PM IST

Led by Karnataka Chief Minister Siddaramaiah, ministers, MLAs, and MPs from the Karnataka Congress gathered at Jantar Mantar in Delhi on Wednesday, February 7, to protest against the non-payment of dues by the Narendra Modi-led Union government and what they perceive as the unfair tax devolution formula by the 15th Finance Commission.

During the protest, Siddaramaiah highlighted the disparity in tax payments and returns, stating that Karnataka contributes Rs 430,000 crore in taxes but receives only Rs 50,000 crore in return. He emphasized the injustice of receiving only Rs 13 out of every Rs 100 paid in taxes and questioned the fairness of the situation. He also pointed out that the 15th Finance Commission has caused a loss of Rs 62,098 crore to the state, prompting the need for questioning. The 15th Finance Commission, a constitutional body, is responsible for recommending the distribution of tax proceeds between the Union government and the states, as well as among the states themselves.

Priyank Kharge, a Karnataka legislative assembly member, raised concerns about the reduction in Karnataka's devolution share from 4.71% under the 14th Finance Commission to 3.65% under the 15th Finance Commission, resulting in a loss of Rs 73,000 crore annually. He also highlighted the state's non-receipt of GST reimbursement and MNREGA payments from the central government.

However, should the Congress be really blaming the Narendra Modi government for a decision that was in fact taken during the United Progressive Alliance government?

Bharatiya Janata Party's IT Cell Chief Amit Malviya pointed out on social media that the decision to reduce Karnataka's share was proposed by the Committee for Evolving a Composite Development Index of States, chaired by Raghuram Rajan, on September 2, 2013. This decision was subsequently implemented by the Finance Commission, during the Congress-led UPA government. 

Malviya criticized the Congress for objecting to a decision made during their own tenure and questioned their intention to nominate Raghuram Rajan to the Rajya Sabha, given his involvement in reducing Karnataka's share. He urged the Congress to clarify its stance before proceeding with the nomination.

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