Why Karnataka Government Protesting Against Central Policies: Here’s What We Know So Far

X: @the_news_21

Today, Jantar Mantar in Delhi witnessed a fervent demonstration led by Karnataka Congress leaders against the central government’s fiscal policies. The protest, aptly named ‘Chalo Delhi,’ highlighted a slew of grievances concerning reduced tax devolution, unbalanced resource distribution, and stalled projects vital for Karnataka’s development.

At the forefront of the protest stands Chief Minister Siddaramaiah, spearheading the charge against what he perceives as systematic neglect from the Union Government. Here’s a breakdown of the key issues fueling the agitation:

1. Upper Bhadra Scheme: Despite an allocation of ₹5,300 crores announced in the previous year’s budget, Chief Minister Siddaramaiah revealed that not a single rupee has been released by the Centre for the vital Upper Bhadra Scheme, leaving the project in limbo.
2. Drought Relief: With a significant portion of Karnataka reeling under severe drought conditions, Siddaramaiah lamented the lack of support from the Centre, citing a requested compensation of ₹17,901 crore that remains unfulfilled.
3. Reduction in Tax Share: The reduction in Karnataka’s tax share from 4.71% to 3.64% between the 14th and 15th Finance Commissions has caused an estimated loss of ₹62,098 crore over five years. Despite appeals for compensation, including a special grant, Finance Minister Nirmala Sitharaman’s refusal has left Karnataka grappling with a substantial financial deficit.
4. GST Woes: The withdrawal of compensation post-GST implementation has exacerbated Karnataka’s financial woes, with the state receiving only a fraction of its tax contributions. Chief Minister Siddaramaiah highlighted the disparity between tax collection and allocation, emphasizing the disproportionate burden borne by Karnataka.
5. Mahadayi and Mekedatu Projects: Environmental clearances and essential permissions for crucial projects like Mahadayi and Mekedatu are pending, hindering progress and exacerbating tensions between the state and central governments.
6. Reduction in Tax Devolution: Despite expectations of an increase in tax share following a doubled budget size, Karnataka has experienced a drastic reduction, coupled with a rise in cess and surcharge, further exacerbating the financial strain on the state.

The ‘Chalo Delhi’ protest serves as a stark reminder of the widening rift between Karnataka’s aspirations for development and the central government’s allocation policies. As the voices of dissent echo in the heart of the nation’s capital, the standoff underscores the urgent need for equitable fiscal measures and collaborative governance to address the pressing challenges facing Karnataka and similar states across the nation.