A Karnataka Congress leader, immediately following the unveiling of the interim budget today, accused the Central government of diverting developmental funds from south India to bolster the northern regions. DK Suresh Kumar, a Congress MP, warned that if this issue remains unaddressed, it might necessitate the southern states to seek autonomy, stating, “If we don’t condemn this in the upcoming days, we will have to place a demand for a separate country as a result of the situation the Hindi-speaking region has forced on us.”
The Bharatiya Janata Party (BJP) responded by accusing the Congress of promoting divisive sentiments. Chaluvadi Narayanaswamy of the BJP criticized the Congress’s stance, suggesting that instead of fostering unity (“Bharat Jodo”), they seem to advocate for division (“Bharat Todo”). He condemned the Congress mindset, drawing parallels to the partition of India in 1947, and questioned the party’s commitment to upholding the nation’s unity despite Rahul Gandhi’s calls for integration.
This discontent echoes Mamata Banerjee’s grievances in West Bengal, where the Congress, newly in power in Karnataka, aligns itself with her narrative of inadequate central funding. DK Suresh Kumar emphasized the perceived injustice faced by southern states, asserting, “We want to receive our money. Whether it is the GST, Custom or Direct taxes, we want to receive our rightful share… our share of money for development is getting distributed to north India.”
Recently, the Karnataka Congress administration released a white paper highlighting the disparity between the state’s contributions to the national economy and the funds it receives from the Centre. M. Lakshmana, a spokesperson for the state Congress, cited figures indicating that Karnataka’s tax contributions far exceed the returns it receives. Despite contributing significantly to corporate and other taxes, as well as GST, Karnataka is reportedly receiving disproportionately low allocations from the Centre.
The grievances are not limited to Karnataka alone. Similar concerns have been raised by Kerala and the DMK-led government in Tamil Nadu. This discontent culminated in Karnataka’s Congress government contemplating the formation of a coalition to challenge what they perceive as biased tax devolution by the Central government. Officials noted a decrease in Karnataka’s share of taxes from 4.71% to 3.64% under the current Finance Commission, further exacerbating the perceived imbalance in resource allocation.