South vs Centre: A heated debate has ignited across India, fueled by protests from three southern states – Karnataka, Kerala, and Tamil Nadu – who accuse the central government of unfair allocation of federal funds. This simmering discontent has reached the halls of Parliament, raising crucial questions about regional equality and equitable resource distribution.
Southern States Ignite the Debate
- Karnataka Leads the Charge: Chief Minister Siddaramaiah and Deputy DK Shivakumar spearheaded protests in Delhi, alleging the BJP-led Centre is deliberately withholding funds and reducing their share of GST revenue. They emphasized Karnataka’s significant contribution to national finances through GST collection and demanded their rightful share. Additionally, they raised concerns about a perceived loss of ₹ 1.87 lakh crore due to an allegedly flawed formula for tax devolution set by the 15th Finance Commission.
- BJP Counters with Criticism: In a parallel move, the BJP held a counter-protest in Bengaluru, highlighting alleged failures of the Karnataka Congress government. They accused the ruling party of neglecting drought-hit farmers and failing to support milk producers.
Beyond Karnataka: Expanding the Dispute
Inspired by Karnataka’s action, MPs from Tamil Nadu and Kerala joined the protests in Delhi, voicing similar concerns about unequal treatment in fund allocation. Representatives from the ruling DMK and Left Front government gathered to press for a fairer share of tax devolution and grants-in-aid.
Parliamentary Sparring: Accusations and Defenses
The issue reached Parliament, where heated arguments and accusations flew between the Centre and the Opposition. The Congress’ Adhir Ranjan Chowdhury claimed non-BJP states, particularly in the South, were being deprived of their financial dues, including GST compensation. Finance Minister Nirmala Sitharaman countered, stating that allocations follow established Finance Commission recommendations and denying any discretionary power in her role.
Administrative Perspective
Finance Secretary TV Somanathan clarified that fund distribution adheres to uniform guidelines, ensuring non-discriminatory practices.
Seeking a Resolution
The debate continues to simmer, raising crucial questions about regional development and equitable resource distribution. While accusations of bias persist, the Centre reiterates its adherence to established procedures. Only time will tell if a resolution can be reached and how it will impact the financial landscape of various Indian states.
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