CM Siddaramaiah, Union Minister Joshi Spar Over Tax Devolution; State to Protest

New Delhi: Union Minister for Parliamentary Affairs, Mines and Coal Pralhad Joshi has dismissed Karnataka Chief Minister Siddaramaiah’s accusation of reduced tax devolution from the Centre as “unfounded” and accused him of “playing dirty politics.” This has further escalated the political tension between the Congress-ruled state and the BJP-led central government.

CM Siddaramaiah and Deputy CM DK Shivakumar will lead a protest by the Karnataka Congress in Delhi on Wednesday against the central government’s tax devolution policies. In response, Pralhad Joshi took to social media to defend the Centre’s position and present his counter-arguments.

Joshi’s Rebuttal:

• He stated that states receive 100% of their SGST and approximately 50% of the IGST collected within the state.
• He clarified that the 15th Finance Commission did not recommend a Special Grant to any state, hence the question of refusing it does not arise.
• He highlighted that Karnataka has received Rs 6279.94 crore as 50-year interest-free loans since 2020-21 to support capital expenditure plans.
• He pointed out that grants-in-aid to Karnataka have significantly increased compared to the UPA era, with Rs 2.08 lakh crore released in the last 9 years under NDA, marking a 243% rise.
• He added that an additional Rs 18,005 crore in grants-in-aid is budgeted for release in the current financial year.

Joshi further accused the Congress of attempting to deflect attention from their own governance failures by blaming the Centre and claimed that unsustainable election promises in Karnataka are driving this narrative. He cited statements by Deputy CM Shivakumar and the CM’s economic advisor to support his claims.

Escalating Politics:

This war of words further intensifies the political climate in Karnataka, with both sides using this issue to score points ahead of the upcoming Lok Sabha elections. While the Centre defends its fiscal policies, the state government maintains its stance on receiving a fairer share of tax devolution.

It remains to be seen how this dispute unfolds and what impact it has on the political landscape of Karnataka.