Will seek legal intervention to secure GST funds: CM Siddaramaiah

Mysuru, Oct 3 (IANS) Karnataka Chief Minister Siddaramaiah has stated that his government will seek legal action to secure the funds, following the recent decision by the Central government to simplify GST, which would lead to an estimated loss of Rs 15,000 crore for the state.

"We will seek legal intervention to secure the funds," CM Siddaramaiah said, adding that the Centre took the step in view of the upcoming elections in Bihar.

Speaking to the media at his residence in Mysuru on Friday, he said that the Central government, which had implemented GST in 2017 and set the rates, had been collecting higher rates over the past eight years. “Will the government now return the extra GST collected from the people? The Central government is now reducing the GST rates that it had increased earlier and is congratulating itself for it. They need not justify that the GST cuts were due to the Bihar elections,” he said.

Responding to the shortfall in Central grants, he said that out of an estimated Rs 17,000 crore in grants due from the Centre, only Rs 3,200 crore has been released to Karnataka. While 18 per cent of Central funds are allocated to Uttar Pradesh, Karnataka receives only 3.5 per cent.

“Karnataka contributes Rs 4.5 lakh crore in taxes to the Centre, yet we receive only 14 paise per rupee. Special grants for the 15th Finance Commission recommended by the Commission -- Rs 5,490 crore, Rs 3,000 crore for lake development, Rs 3,000 crore for roads, Rs 5,000 crore for the Bhadra dam project -- have not been released. A total of Rs 17,000 crore due in grants has been withheld. If necessary, like last time, we will seek legal intervention to secure the funds,” he said.

CM Siddaramaiah further added that despite the challenge of covering expenditures under the state’s five guarantees with limited Central funds, the government would meet the challenge courageously.

"GST simplification has caused states to face greater losses. Karnataka will incur an estimated annual loss of Rs 15,000 crore. The Central government provides GST compensation according to the benefit of NDA states. Karnataka’s BJP MPs only praise Prime Minister Narendra Modi; they do not think about the state’s interests,” he said.

Responding to questions about the progress of the caste survey in the state, he said that surveys covering around three crore people from 80 lakh households have already been completed. The survey of 1.8 crore households is expected to finish by October 7, and further decisions will be taken based on the progress.

Replying to Union Minister Pralhad Joshi’s statement that the survey was being conducted to prevent vote transfers and caste manipulations, Siddaramaiah said that Joshi, being a Central minister, should clarify the purpose of the caste survey to be done by the Centre.

“Is the Central government intending to divide people by caste and religion? In Karnataka, economic, social, and educational surveys are being conducted to gather information about the people’s condition. Earlier, caste information like Brahmin, Christian, and other categories was included in the Kantraraju report. If people voluntarily declare their caste, the government is not responsible. The Commission has removed these caste categories from the list. Therefore, the Commission will only receive voluntary data. There is no question of dividing people by caste. BJP is misleading the people for political purposes,” he said.

Responding to Leader of Opposition R. Ashoka’s claim that even if the government does not resolve farmers’ issues, it should be referred to as a dead government, Siddaramaiah said, “Although Ashoka is the opposition leader, he speaks under the direction of the RSS. His statement is politically motivated,” he added.

--IANS

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