FM Nirmala Sitharaman Rebuts Karnataka Govt’s Claims on Tax Devolution
Date: November 15, 2024
Category: Tax News
Union Finance Minister Nirmala Sitharaman dismissed the Karnataka government’s allegations of “step-motherly treatment” in tax devolution as baseless and aimed at creating confusion among voters.
Key Points Raised by the Finance Minister
- Tax Devolution Figures:
Sitharaman emphasized that the quantum of funds allocated to states between 2014-2024 far exceeds those given during the UPA government’s tenure (2004-2014).
She assured Karnataka voters that funds were being released on time and in line with the Finance Commission’s recommendations.
- Comparison with UPA Era:
The FM highlighted a 3x to 4x growth in state allocations during the BJP-led administration.
- Allegations Against Karnataka and Kerala:
The FM accused Karnataka and Kerala governments of attempting to “muddy the waters” by making unfounded claims about unequal treatment.
- Concerns About Specific States:
Sitharaman clarified that states like Bihar and Andhra Pradesh, often cited in such debates, face unique challenges:
Bihar: Annual flooding caused by rivers from Nepal.
Andhra Pradesh: Special provisions due to the Polavaram Project, designated as a national project.
- Advice to Youth:
During an interaction, the FM offered financial advice to a young student, stating:
“Learn to save first before spending.”
Analysis
The FM’s rebuttal underscores the Centre’s commitment to transparent and fair tax devolution. Her remarks serve as a counter-narrative to claims by state governments, stressing data-driven decisions and equitable resource allocation.
