Karnataka CM Advocates for Fair Fiscal Federalism

Karnataka Chief Minister Siddaramaiah has written to his counterparts in eight states about the perceived unfair distribution of tax revenues by the Union government. He has invited them to a conclave in Bengaluru to discuss fiscal federalism issues, urging a balanced approach towards tax allocations.

Karnataka Chief Minister Siddaramaiah has reached out to the Chief Ministers of eight states to express concerns over what he terms as the 'unfair' devolution of taxes by the Union government. He is advocating for a conclave in Bengaluru to address the issues related to 'fiscal federalism.'

The states contacted include Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab. According to Siddaramaiah, states with higher Gross State Domestic Product (GSDP) per capita, such as Karnataka, are being penalized for their economic performance by receiving disproportionately lower tax allocations.

Siddaramaiah shared his letter on the social media platform 'X,' insisting that this 'unjust approach' compromises the spirit of cooperative federalism and endangers the financial autonomy of progressive states. During discussions with the 16th Finance Commission, he highlighted the need to re-evaluate the emphasis on equity over efficiency and performance in tax distribution.

(With inputs from agencies.)