Karnataka MLAs, Congress leaders protest against Centre in Delhi
Karnataka Chief Minister Siddaramaiah led the "Chalo Delhi" protest, against the alleged "step-motherly" treatment of the Centre toward the state, in the national capital on Wednesday. At least 135 Congress MLAs, 28 MLCs, one Lok Sabha MP, and five Rajya Sabha members reportedly participated in the protest at Jantar Mantar. The protest is part of what the Karnataka Congress is describing as the "South Tax Movement" on social media platforms.
Why does this story matter?
After Union Finance Minister Nirmala Sitharaman presented the Interim Budget last week, state leaders accused the central government of "injustice" toward Karnataka regarding tax devolution and other grants. Meanwhile, Siddaramaiah has alleged that Prime Minister Narendra Modi and Union Home Minister Amit Shah did not reply to the state's drought relief requests. He said that the Centre has not even allocated Rs. 5,300 crore for the Upper Bhadra Project, which was announced in the previous budget.
Siddaramaiah, DK Shivakumar at Jantar Mantar
Siddaramaiah invites Union ministers, MPs to 'non-partisan' protest
The chief minister has written a letter to MPs and Union ministers seeking their support. He appealed to all "stakeholders" to set aside political differences for Karnataka's progress. In his letter, he wrote, "The gross injustice in the distribution of tax share to Karnataka, neglect, and delay in giving permission...for various projects are affecting the lives of the people." Bharatiya Janata Party (BJP) leaders Sitharaman and Pralhad Joshi have also been invited to participate in the "non-partisan" protest.
Allegations of declining budget allocation for Karnataka
Ahead of the protest, the chief minister expressed strong dissatisfaction with the Union Budget, claiming that Karnataka's allocation has been significantly reduced. In 2017-18, the state received Rs. 47,990 crore, while in 2023-24, it is estimated to receive only Rs. 50,257 crore. Siddaramaiah noted that the state's tax share should have doubled but is instead declining. This comes after Goods and Services Tax (GST) compensation for revenue losses was discontinued in June 2022, causing hardship for states.
Siddaramaiah accuses GST Council of succumbing to BJP states
The GST was introduced on July 1, 2017, and June 30, 2022, was the end of the transition period. During this time, states were compensated for any loss in revenue due to the implementation of the new tax regime. Siddaramaiah alleged that the GST Council went with the decision of the majority of BJP states in the council and agreed to withdraw the compensation.
KS Eshwarappa calls protest 'election stunt'
Meanwhile, BJP leader KS Eshwarappa has criticized the state government led by the Congress for organizing the protest using taxpayers' money. He dismissed the protest as an "election stunt," arguing that all concerns can be resolved through negotiations with the finance minister. "They are doing it with the government's money. Their flight charges, stay, food and other expenses are borne by taxpayers' money," he said.
