Mysuru, 03 October (H.S.) :

Chief Minister Siddaramaiah has said that Karnataka will suffer an estimated loss of Rs 15,000 crore due to the central government's decision to simplify GST in the wake of the Bihar elections.

Speaking to the media at his residence in Mysore, he said that responding to the central government's announcement to celebrate the GST festival, the central government implemented GST in 2017 and fixed the GST rate. Will the central government, which has been collecting higher rates for the last eight years, return that money? The center is busy patting itself on the back by reducing the GST rate that it itself increased. He said that there is no need to claim that GST has been simplified and reduced because of the elections in Bihar.

Forgery: About 17000 crores of central grant to the state

Responding to the fact that only Rs 3200 crore has been given to the state as tax money from the Centre, he said that Uttar Pradesh is getting 18% and the state is getting only 3.5%. It is unfair that Karnataka is giving Rs 4.5 lakh crore as tax money to the Centre, but we get only 14 paise per rupee. The Union Finance Minister cancelled the special grant given to the state in the 15th Finance Commission. As per the Commission's recommendation, Rs 5490 crore, Rs 3000 crore for lake development, Rs 3000 crore for road construction, and Rs 5000 crore for the Bhadra Upper River Project were not given to us. The total grant that was supposed to come to Rs 17000 crore has been embezzled. Like last time, this time too, if necessary, we will seek the help of the court and get the central grant.

Although it is a challenge for the government to cover the cost of guarantees amid low central funding, the challenge will be faced boldly. State governments will face more losses due to GST simplification. Karnataka will lose an estimated Rs 15,000 crore annually due to this. The central government is providing GST relief as per the convenience of the states joining the NDA. Siddaramaiah has accused Karnataka's BJP MPs of praising Modi and not thinking about the welfare of the state.

Hindusthan Samachar / Rakesh Mahadevappa