CM launches ‘Fair Share, Stronger Federalism’ campaign

A day ahead of the Union Budget, Chief Minister Siddaramaiah launched “Justice for Karnataka — Fair Share, Strong Federalism” campaign and released nine posters highlighting the State’s long-standing demands, including the restoration of the tax share, reduced from 4.71% to 3.64% in Central tax devolution.

Among the other key demands are correcting the “flawed formula” of penalising development and population control and restoration of the use of 1971 population data in tax sharing, reduction in income distance weightage from 45% to 25%, setting right “the unrealistic GSDP base-year methodology” as IT exports inflate the State’s GSDP and distort fair comparisons.

The government mooted the adoption of a Panchayat devolution index in fund allocation for effective governance in local governments. It also sought a special package of ₹10,000 crore for the backward Kalyana Karnataka region, special grants for ecology, farmers and irrigation projects, and an increase in the State’s share of taxes to 50% and a cap on cess at 5% are part of the demands.

In a note, Chief Minister Siddaramaiah said the government has placed its “Constitutionally grounded” demands before the 16th Finance Commission seeking justice in tax devolution and fiscal federalism, and expressed hope that the Budget will fulfill it.