CM uses formal reply to fault Guv’s speech, flag fiscal losses

CHief government minister Siddaramaiah used his formal response to the deliberate on the regulator’s call in the State Assembly to deliver a sweeping political and fiscal critique, defending his administration’s welfare record while accusing the Union government of weakening federal principles and depriving the state of funds.He began by raising objections to the manner in which the Governor delivered the joint-session address. “The Governor did not read the full speech. He left in haste without even mentioning the phrase ‘Jai Constitution’ that was part of the text. He did not wait until the national anthem concluded. This is not right,” he said.Referring to constitutional provisions, he added, “If Article 176 of the Constitution had been read carefully, this situation would not have arisen. Joint sessions have been held in this manner since the Constitution came into force.”He framed the issue as institutional rather than personal. “We are not against the Governor as a person. He is, fundamentally, a good individual. Our opposition is to the Central government. But constitutional procedures must be followed,” he said.Responding to BJP legislator Sunil Kumar’s description of him as a “helpless Chief Minister,” Siddaramaiah said, “Sometimes, in the face of falsehood, truth itself appears helpless. You have called this a ‘constitutional-less government’ and said governance has deteriorated. You have even questioned my sensitivity. You should first examine whether you have the moral standing to make such claims.”He continued, “Was I praised by the opposition when I was Chief Minister from 2013 to 2018? You criticised me then, and you criticize me now. I am the same, and I will remain the same.”A significant portion of the address focused on Karnataka’s fiscal relationship with New Delhi, particularly after the end of the Goods and Services Tax compensation regime. “Since 2022, the state has been losing between ₹18,000 crore and ₹20,000 crore every year due to the end of GST compensation. In four years, that alone amounts to a loss of ₹75,000 to ₹80,000 crore. From 2020 to 2025, the total loss to the state is about ₹2 lakh crore,” Siddaramaiah said.He added, “If the Centre had stopped collecting the GST compensation cess from people, I would have agreed. But they continue to collect cess and surcharge -- nearly ₹6 lakh crore -- and not a single paisa of that comes to the states.”On Finance Commission allocations, he said, “The 14th Finance Commission gave us a 4.71% tax share. We said justice would be done only if we received more than that. But the 16th Finance Commission has recommended only 4.131%. We asked that the overall tax devolution to states be increased to 50%, but it remains at 41%. Compared to the 14th Commission, this means a 14.1% reduction for Karnataka.”He also pointed to differences in allocations for local bodies and disaster relief, saying the state had been “treated unjustly.”Siddaramaiah questioned the status of previously announced assistance for a major irrigation project. “The Union Finance Minister announced funding for the Krishna Upper Stage project, and it was said it would be declared a national project. Neither has happened. Is this not true?” he asked.Describing his administration as responsive to hardship, Siddaramaiah said, “Because we are a sensitive government, we have implemented guarantee schemes and provided more than ₹1.16 lakh crore so far. These guarantees have strengthened people’s purchasing power. You oppose the poor and the middle class; that is why you cannot see this.”