Sitharaman rebuts allegation of withholding funds from non-BJP states
Union Finance Minister Nirmala Sitharaman, on Monday, rejected claims of "discrimination in allocating funds to non-Bharatiya Janata Party (BJP) states," during the Question Hour in the Lok Sabha. "There is no way political interests would come in the way of the states getting the funds. I don't have the discretion; it's the finance commission that takes the decision," the finance minister said. Sitharaman was responding to a question by the Leader of Opposition in the Lower House Adhir Ranjan Chowdhury.
Why does this story matter?
The finance minister's statement comes after Congress MP DK Suresh's controversial "separate southern nation" remark triggered a row. After the Interim Budget was presented in the Lok Sabha on Tuesday, Suresh said that taxes collected from the southern part of India were being distributed in north India while southern states were waiting to receive their due share. He also warned that the southern states would be forced to demand a separate nation if the "injustice" wasn't rectified.
Opposition questions alleged deprivation of funds to Karnataka
During the session, LoP and Congress MP Adhir Ranjan Chowdhury questioned the alleged lack of funds for Karnataka, a non-BJP governed state. Chowdhury said that the state has been protesting the central government's "indiscriminate and arbitrary attitude" in fund allocation. "Everything was hunky-dory, but after the new installation of the government — the non-BJP government... since then the trouble has started. What is the reason behind this?" he said.
Introspect: Sitharaman blames Karnataka government
Responding to Chowdhury's allegations, Sitharaman said that the finance commission sets rates without any interference from the central government. She added that no finance minister can intervene in fund allocation. Criticizing the Congress-led Karnataka government, she said, "If the expenditure is going into areas which cannot be sustained by your budget, I am not answerable for that. Introspect, please."
Finance minister has full power: Karnataka deputy CM
Karnataka Deputy Chief Minister DK Shivakumar, however, said that the finance minister has the power to rectify any "discrepancy." Addressing a press meeting, Shivakumar said, "She represents Karnataka. The finance minister has full power." "Even on the finance commission issue, whatever discrepancy is there, they have the entire power to rectify it, give justice," the Congress leader added.
Watch: Shivakumar's full statement here
Siddaramaiah to protest Centre's 'step-motherly treatment' toward Karnataka
Karnataka Chief Minister Siddaramaiah, on Wednesday, will join a protest organized by elected Congress representatives from Karnataka in New Delhi on Wednesday. The protest aims to address the alleged "step-motherly treatment" of the state by the BJP-led Centre regarding budget and fund allocations. "We don't say don't give to north Indian states; we are asking what we deserve, what we need, and what needs to be given to us," Siddaramaiah said on Monday.