Karnataka, Kerala bring campaign against ‘financial atrocities’ of Centre to Delhi
- The Karnataka government, led by CM , is set to stage a sit-in protest at Jantar Mantar in Delhi
- denouncing the alleged biased fiscal policies of the Centre.
Solidarity of other States with Karnataka
- Kerala Government will also join the protest against the Centre's neglect of the state's revenue rights.
- The Tamil Nadu Government also supported a united front against what they perceive as unjust fiscal policies by the Centre.
Key Issues Raised
- Karnataka's protest emphasizes the perceived financial injustices inflicted on the state by the Central government
- The Government cited reductions in revenue shares and faulty GST implementation.
- Kerala's grievances center on the alleged slashing of its borrowing limit and reductions in revenue shares,
- Prompting the state to take legal action against the Union government.
- Tamil Nadu accuses the Centre of exploiting its powers to limit state borrowing capacity
- It alleged unfairly imposition of restrictive conditions on funding for state-owned enterprises by the Centre Government.
- These states allege discriminatory fiscal policies favoring BJP-led states.
- All protesting states demands for a collective response to uphold the principles of fiscal federalism.
Response of Centre Government
- Tax devolution follows the recommendations of the Finance Commission.
- The Centre Government alleged the political grounds for such protest instead of having any some economic basis.
Prelims Takeaway
- Fiscal Federalism
- The Right to Protest