Karnataka Chief Minister Siddaramaiah has publicly called for the immediate removal of Nirmala Sitharaman from her position as Union Finance Minister, citing her lack of fundamental budgetary knowledge as a significant concern. In a recent statement, Siddaramaiah emphasized the dangers of having someone unqualified manage the finance portfolio, labeling it a “highly risky” decision for the country. His remarks were made in light of Sitharaman’s press conference on Sunday, where she allegedly attempted to downplay the injustices faced by Karnataka under the Modi government. Siddaramaiah’s critique is rooted in the belief that the central government has provided minimal support to Karnataka, and he has detailed the financial discrepancies and losses that the state has experienced during Sitharaman’s tenure.
In his criticism, Siddaramaiah pointed to specific claims made by Sitharaman regarding financial allocations to Karnataka during different government regimes. He highlighted that while Sitharaman stated that the previous UPA government (2004-2014) allocated ₹60,779 crore to Karnataka, the NDA government (2014-2024) had supposedly granted ₹2,36,955 crore. However, Siddaramaiah noted that these figures are misleading, as they do not account for the significant increase in the central government’s overall budget size during the same period. In 2013-14, the central budget was ₹16.06 lakh crore, with Karnataka receiving ₹31,483 crore, which constituted 1.9% of the total budget. In stark contrast, for the 2024-25 budget of ₹48.02 lakh crore, Karnataka is slated to receive only ₹59,714 crore, or just 1.2% of the budget, resulting in a financial shortfall of ₹31,866 crore. Siddaramaiah further elaborated on the impact of the 14th and 15th Finance Commissions on Karnataka’s tax share. While the 14th Finance Commission allocated Karnataka a tax share of 4.72%, the 15th Finance Commission reduced it to 3.64%, leading to an estimated loss of ₹62,098 crore in tax share over the past five years. Despite Karnataka being one of the top states for Goods and Services Tax (GST) collection, receiving only 52% of its collected funds, Siddaramaiah condemned the unscientific implementation of GST that has resulted in significant losses for the state, estimating the total loss from 2017-18 to 2023-24 at approximately ₹59,274 crore. The Chief Minister also criticized Sitharaman for rejecting recommendations made by the 15th Finance Commission for special grants to Karnataka, which included ₹5,495 crore in financial assistance. He expressed disappointment that a representative from Karnataka would act against the state’s interests, further asserting that over the past ten years, the BJP-led central government has unjustly allocated resources, negatively impacting states governed by opposition parties.
Siddaramaiah’s fervent appeal for Nirmala Sitharaman’s removal from the Union Cabinet underscores the growing dissatisfaction with the central government’s financial policies and their impact on Karnataka. By highlighting the discrepancies in funding allocations and Sitharaman’s perceived failures as Finance Minister, Siddaramaiah aims to draw attention to what he considers the significant injustices faced by the state under the current administration. His call for action reflects broader concerns among state leaders regarding the equitable distribution of resources and the need for capable leadership in critical government roles. As the political landscape evolves, Siddaramaiah’s statements may resonate with constituents and spark further debate on fiscal policies and governance, particularly in the context of state rights and central accountability.
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