Reduced tax share for Karnataka was suggested by the Congress appointed Committee: B.Y Vijayendra

The committee's primary objective was not to recommend changes in the states' share of tax revenue: Siddaramaiah

14th Finance Commission proposed increase in tax devolution to Karnataka: Siddaramaiah

In light of reports of a possible nomination of the former governor of the Reserve Bank of India (RBI) Raghuram Rajan for a Rajya Sabha seat from Karnataka, the Karnataka State President of the Bharatiya Janata Party (BJP) BY Vijayendra has held him responsible for the reduction in tax share as per the 15th Finance Commission report. “Reduced tax share for Karnataka from 4.13% to 3.79%  was suggested by the Congress appointed Committee headed by Rahul Gandhi’s friend & Congress admirer Raghuram Rajan. CM Siddaramaiah who didn’t have the courage to protest, had gladly accepted the report to please his bosses,” he posted on X.  

Congress & @siddaramaiah are a classic example for the popular saying “Pinching the child & also Rocking the Cradle at the same time”.

Reduced tax share for Karnataka from 4.13 to 3.79% was suggested by Congress appointed Committee headed by @RahulGandhi ‘s friend & Congress… pic.twitter.com/bLqP66nMWu

— Vijayendra Yediyurappa (@BYVijayendra) February 10, 2024

CM Siddaramaiah has now responded to these allegations and presented a defence of Raghuram Rajan. “It is crucial to understand the mandate of the Committee for Evolving a Composite Development Index of States, which was indeed headed by Dr. Raghuram Rajan. The committee’s primary objective was not to recommend changes in the states’ share of tax revenue. Instead, its purpose was to identify backward states based on various criteria, thereby helping in the equitable allocation of development funds to address regional disparities. The committee’s focus was on ensuring a balanced distribution of certain development funds* to enhance the overall growth and progress of all states, particularly those lagging in specific development parameters. The 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% in the 13th Finance Commission to 4.713% in the 14th Finance Commission. This increase clearly contradicts the allegations that the committee’s report led to a reduction in Karnataka’s tax share. *Karnataka’s tax share was actually reduced by the 15th Finance Commission which was constituted by Narendra Modi government and whose report was submitted on November 2019*. Was the 15th Finance Commission constituted in 2019 by Narendra influenced by some committee which gave a report in September 2013,” Siddarmaiah’s post on X highlighted.

In light of the recent statements made by certain BJP leaders, including its Karnataka President @BYVijayendra, regarding the devolution of funds to Karnataka and the involvement of a committee headed by former RBI Governor Raghuram Rajan, it is imperative to set the record… pic.twitter.com/O4M1juWslR

— Siddaramaiah (@siddaramaiah) February 12, 2024