Amidst a public demonstration led by Karnataka Chief Minister Siddaramaiah in New Delhi, accusing the central government of fiscal ‘injustice’ in terms of tax devolution and grants-in-aid, Finance Minister Nirmala Sitharaman delivered a staunch rebuttal. In the Lok Sabha, Sitharaman clarified that the state had received an increased share of central taxes and grants-in-aid under the current government compared to the previous administration. She meticulously backed her assertions with financial data from various Finance Commissions and reinforced her commitment to adhering to their recommendations.
On the other side, Chief Minister Siddaramaiah, alongside other Congress leaders, protested at Jantar Mantar in the capital. Siddaramaiah contended that Karnataka, despite being a significant contributor to national revenue, has not received adequate relief funds for drought and has been facing an alleged fiscal shortfall due to central policies. The Deputy Chief Minister DK Shivakumar expressed similar sentiments regarding Karnataka’s rightful share of the resources.
Concurrently, the BJP held a demonstration near the Karnataka assembly challenging the Congress state government’s performance and accusing it of resorting to theatrics instead of governance. BJP leaders criticized the Congress’ decision to protest in Delhi and called for a transparent discussion of financial aid received from the centre, while the congress turned to staged protests to express their grievances. As tensions escalated, police took preventive actions to ensure order. Notably, GT Devegowda of the Janata Dal (Secular), a BJP ally, advised against the Congress’s strategy of protesting in Delhi, suggesting a cooperative discussion could yield more fruitful results.