K’taka CM’s allegations of injustice a deliberate distortion of the truth: Amit Malviya

BJP's IT cell chief Amit Malviya has hit out at Karnataka Chief Minister Siddaramaiah for alleging "unfair" allocation of funds by the Centre to the state.

Taking to the micro-blogging site 'X' ahead of the Siddaramaiah-led Congress protest in New Delhi, Malviya said, "Siddaramaiah’s expectation of 15 per cent growth rate in tax revenue is a joke and a lie, given that Covid hit state GDP for two years. He ignores the life-saving mobility restrictions and uses a flawed indicator of tax performance.

"Tax buoyancy is a better indicator to measure, which shows how tax revenue responds to GDP growth. It has soared from 0.72 before GST to 1.22 after it, proving GST’s positive effect on tax efficiency and compliance. His view is a deliberate distortion of the truth and an insult to the GST’s benefits.

"The devolution of funds to states is based on rational criteria, laid out in Article 280. It ensures fair distribution of resources. Centre’s tax devolution to Karnataka has increased by 245.7 per cent, reaching Rs 2.82 lakh crore (under Modi Govt), compared to Rs 81,795 crore under the UPA, he said.

"This contradicts the false claim of financial neglect or adverse impact due to the revised tax share percentages. The Centre’s Grants in Aid to Karnataka have also surged by 243 per cent, with Rs 2.08 lakh crore already released, compared to Rs 60,779 crore under the UPA. The projected Grants in Aid by the end of Modi Govt’s term totals up to Rs 2.26 lakh crore, he explained.

"Siddaramaiah’s demand for Rs 5,495 crore special grant is also a lie. The 15th FC did not recommend Special Grant to any State. There is no such recommendation to accept or reject. It is a figment of his imagination. The Centre has been generous and supportive of Karnataka, unlike Siddaramaiah.

"It has not only devolved taxes, but also given Rs 6,212 crore as 50-year interest-free loans to boost Karnataka’s capital expenditure (as on 11th Dec 2023). His complaint about the state receiving less tax revenue than collected is either a misunderstanding or manipulation.

"He is trying to blame the Centre for his own failures and broken promises. He forgets that many companies in Bengaluru have pan-India operations and pay taxes accordingly. The location of direct tax collection is not a fair basis for sharing tax, as the money comes from all over India," he said.

"Siddaramaiah should also examine the funds Bengaluru gets versus the regions like ‘Kalyan Karnataka’ and Gulbarga. Does he care about the unfair treatment of Bengaluru? This approach (raking up North-South divide) to politics is deplorable and is a typical characteristic of Congress leaders, who are trusted allies of the ‘Tukde Tukde’ gang. Such tactics not only undermine unity but also pose significant risk to social harmony, Amit Malviya stated.