BENGALURU, 12 FEB

Chief Minister Siddaramaiah slammed the BJP for alleging that former RBI governor Raghuram Rajan influenced the reduction in Karnataka’s tax share. Siddaramaiah called the claims “unfounded” and “misleading”. Rajan is a Congress candidate for Rajya Sabha from the state.

“It is disheartening to witness the extent to which BY Vijayendra and BJP leaders are willing to forsake the heart and soul of Kannadiga pride, all for winning approval from BJP high command. It is in the DNA of BJP to spread fake news,” he said. 

State BJP President Vijayendra claimed that the Rajan committee influenced the Finance Commission regarding the State’s share of tax. 

The Chief Minister said the committee’s responsibilities were to identify backward states and ensure equitable allocation of developmental funds.

The committee's report states that the framework should be used with existing methodologies, including that of the Finance Commission's recommendations for a fair share of tax devolution. 

“It is also important to note that the Finance Commission, which is mandated to determine the distribution of tax revenues between the Centre and the states, operates independently of the committee,” Siddaramaiah said.

He said that subsequently 14th Finance Commission report (submitted on 15 December, 2014), which came after the committee’s recommendations (submitted in September 2013), proposed an increase in the devolution of taxes to Karnataka, from 4.328 per cent in the 13th Finance Commission to 4.713 per cent in the 14th Finance Commission.

“Was the 15th Finance Commission constituted in 2019 by PM Narendra Modi influenced by some committee which reported in September 2013?” he asked.

The State’s share was reduced by the 15th Finance Commission constituted by Modi’s government whose report was submitted in November 2019.  Salar News