Karnataka Congress MP DK Suresh Kumar’s recent statement that the southern states would separate and form an independent state has created an unwanted controversy. DK Suresh Kumar is the brother of Karnataka Deputy Chief Minister DK Shivakumar and a Lok Sabha MP from rural Bangalore. Reacting to Finance Minister Nirmala Sitharaman’s interim budget on February 1, Kumar also said that taxes collected from southern states are being spent on northern states. Bharatiya Janata Party (BJP) leaders at the Center and in Karnataka criticized Congress leader Rahul Gandhi, who is currently on his second Bharat Pure Land Yatra, over Suresh’s comments. They also sought an apology from Congress leader Mallikarjun Kharge, who distanced himself from the controversial remarks.
After the formation of the Indian bloc, North-South politics increased. Alliance partners in South India, such as the Dravida Munnetra Kazhagam (DMK) in Tamil Nadu, the Congress in Karnataka (and now also in Telangana), and the Left in Kerala, have been unable to do so due to lack of proper election planning. It raises a provocative topic. To attract attention.
In December last year, DMK MP DNV Senthil Kumar made controversial remarks in Parliament about the ‘North-South divide’ in Parliament, sparking a massive backlash. Senthil Kumar has expressed disdain for the Hindi heartland states while attacking the ruling BJP following its victory in assembly elections in Madhya Pradesh, Rajasthan and Chhattisgarh. used words.
unnecessary controversy
Just a few months before the Lok Sabha elections, Mr. Suresh again sparked controversy by highlighting that the Center was not giving southern states their due share in GST and direct taxes, perhaps for political gain. brewed. Whatever the coercion, such biased comments by a member of parliament belonging to a national political party like the Congress are reprehensible and set a bad precedent. It is usually the regional parties that come up with such imagined narratives of division and prejudice that are anxious and worried about losing their voter base to powerful national parties. We have seen regional parties like the DMK, All India Dravidian Munnetra Kazhagam (AIADMK) and the Janata Dal (Secular) adopting this strategy against the Congress in the past as well. Ta.
Karnataka Bharatiya Janata Party chief BY Vijayendra said Suresh’s comments were irresponsible as a parliamentarian and were against the constitution and the spirit of national unity. “This is a reflection of Congress’s ideology and desperation to gain power and attention at all costs. Congress’ dredging up unimportant issues is a reflection of its desperation to divert public attention from a failed administration.” “It reflects the sentiments of the government and its dissatisfaction with not being able to keep its promise to implement the five guarantees ‘part of Karnataka’s budget,'” he says.
Why are the southern states unhappy?
Historically, at its inception, the Finance Commission believed that poor states that were unable to meet the minimum resource requirements for tax revenue and decentralization needed additional support from the Centre. Therefore, the amount of grant aid to each state depends on its economic situation. Southern states’ misfortunes over fiscal decentralization are not new. But recently, this feeling has become stronger and stronger.
The contribution of the five southern states (Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Kerala) to the total central tax has increased significantly in recent years. So, logically, they also want to spend more. For example, in December 2023, five states accounted for more than 26% of GST collections. In 2021-22, five states accounted for 26 per cent of the Centre’s total direct tax collections (income tax and corporate tax). Meanwhile, under the 15th Finance Commission ruling, the combined share of these states in the divisible central tax revenue pool is 15.8%. This is lower than the combined share of 17.98% for these states according to the 14th Finance Commission Awards. Only Tamil Nadu’s share increased marginally from 4.02% to 4.08%.
“In election politics, the line that Congress leaders take is dangerous. Since the first Finance Commission in 1952, state tax collection has never been a principle of tax decentralization or devolution of resources from the center. Probably before Bengaluru emerged as a nation.” Karnataka, one of the country’s major economic drivers, has benefited from this approach of successive Finance Commissions. It would have been,” said K. Subramaniya, a Bengaluru-based senior political analyst.
Pressure to fund the “Five Guarantees”
A closer look at the financial statements of the interim budget reveals that such gross inequities have not been remedied in Karnataka. According to the latest post-interim budget report, the Center will transfer a total of Rs 12.19 billion in taxes and duties to states. Of this, Karnataka’s share is 3.65% as decided by the 15th Finance Commission. Karnataka’s share in tax devolution has come down from 4.71% under the 14th Finance Commission to 3.65% under the 15th Finance Commission. Despite the decline, the Center will transfer Rs 44,485.49 crore to Karnataka as the state’s share in taxes and public services for 2024-25. The Siddaramaiah government has raised its voices and cries over this, predicting that Karnataka will receive Rs 41,483 crore in 2024-25 through devolution. So what is the reason behind the Karnataka MP’s rant after all?
Perhaps the answer lies in the Siddaramaiah government’s allocation, or rather the diversion of funds into election giveaways in the name of the ‘Five Guarantees’. The Congress’s “five guarantees” that led to a landslide victory in the May 2023 assembly elections have depleted the state’s coffers. The additional amount of Rs 37,252 billion will help the Prime Minister to fund five guarantees costing Rs 55,000 billion. The chancellor, who is due to table a record 15th budget on February 16, faces huge pressure to fund the guarantee at least until the election year. How he accomplishes this will be a subject of widespread interest.
“Just a few months after coming to power, people have lost all hope in this government. Not a single development project has been announced in the last 10 months. This shows the government’s apathy towards development,” said Vijayendra. he says.
Essentially, it is due to the pressure of electoral politics that Indian voters like Congress and DMK spread false stories to get the attention of voters. Elected officials should not use rhetoric or provocation as a means to defeat their political opponents. However, it is also unrealistic to expect politicians stripped of ideas to challenge the 2024 general election with a development plan.
(Bharti Mishra Nath is a senior journalist)
Disclaimer: These are the author’s personal opinions.