Siddaramaiah writes to CMs of 8 states on unfair devolution of taxes by Centre
Siddaramaiah on Wednesday said he has written to the Chief Ministers of eight states regarding the «unfair» devolution of taxes by the Union government, and has invited them to a conclave in Bengaluru to collectively deliberate on the issues of «fiscal federalism». He said he has written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab.
«States with higher GSDP (Gross State Domestic Product) per capita, like Karnataka and others, are being penalised for their economic performance, receiving disproportionately lower tax allocations. This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive states,» he said in a post on 'X' with "#OurTaxOurRight" hashtag.
«I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift & create incentives for growth and better tax mobilisation,» he said.
Siddararamaiah has also posted the letter written to CMs of other states on 'X'.
«As you are aware the 16th Finance Commission has begun its deliberations. The previous Finance Commissions have laid excessive emphasis on equity at the cost of efficiency and performance. As a result, states with higher GSDP per capita and higher contribution to the gross tax revenues of the union are progressively receiving lower shares of the central fiscal transfers,» he said.
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