Mysuru/Bengaluru: Karnataka Chief Minister Siddaramaiah has accused the Central Government of withholding ₹17,000 crore in funds due to the state and warned that his government will approach the court if the dues are not released. He said the Centre’s move to simplify GST rates, especially ahead of Bihar elections, would cost Karnataka nearly ₹15,000 crore annually in revenue losses.
Speaking to reporters at his Mysuru residence, the CM questioned the Centre’s double standards on taxation. “In 2017, it was the Union Government that implemented GST and fixed high rates. For eight years, they collected revenue at higher rates. Now, they are reducing GST for political mileage and patting themselves on the back. Will they return the excess GST collected from the people?” he asked.
Highlighting Karnataka’s financial injustice, Siddaramaiah said:
- The state contributes nearly ₹4.5 lakh crore in taxes, but gets back only 14 paise per rupee.
- While Uttar Pradesh receives 18% of central funds, Karnataka gets just 3.5%.
- Grants recommended by the 15th Finance Commission — ₹5,490 crore as special assistance, ₹3,000 crore for tank rejuvenation, ₹3,000 crore for road projects, and ₹5,000 crore for the Bhadra Upper Canal Project — have not been released.
- “In total, ₹17,000 crore has been denied to Karnataka. If needed, like last time, we will move the court to secure the state’s rightful share,” the CM declared.
He further said that the Centre’s selective GST relief measures were aimed at NDA-ruled states, leaving Karnataka at a disadvantage. “Our BJP MPs are busy praising the Prime Minister, but not fighting for Karnataka’s rightful dues,” Siddaramaiah charged.
On the caste census, the CM said that 80 lakh households and 3 crore individuals had already been surveyed, with the process likely to be completed by October 7. Responding to Union Minister Pralhad Joshi’s criticism, Siddaramaiah clarified that the exercise was aimed at gathering socio-economic data, not dividing communities.
On Opposition Leader R. Ashok’s remarks that the government was “as good as dead” if farmers’ problems remained unresolved, Siddaramaiah said the BJP was only making political allegations under RSS influence.
Karnataka GST loss, ₹17,000 crore central funds, Siddaramaiah vs Modi government, Karnataka finance injustice, GST simplification impact, Karnataka court move for funds, caste census Karnataka, BJP MPs Karnataka criticism
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