BY Vijayendra ‘wrong’ in blaming Raghuram Rajan for slashing Karnataka’s tax revenue: CM

From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Feb 12: The claims spread by State BJP leaders including its President B Y Vijayendra that former RBI Governor Dr Raghuram Rajan had recommended reduction in Karnataka’s share in tax revenue is wrong and inaccurate, said Chief Minister Siddaramaiah.

In a detailed statement to the media on Monday, he said: “It is unfortunate how people in responsible positions post fake narratives to push their agenda. It is in the DNA of BJP to spread fake news.’’

He said the recent statements by some BJP leaders, including Vijayendra, regarding the devolution of funds to Karnataka were based on a committee headed by Dr Rajan were ‘factually inaccurate’.

Siddaramaiah explained that the mandate of the committee headed by Dr Rajan was for ‘Evolving a Composite Development Index of States. Contrary to the claims made (by BJP leaders), the committee's primary objective was not to recommend changes in the states' share of tax revenue. Instead, its purpose was to identify backward states based on various criteria, thereby helping in the equitable allocation of development funds to address regional disparities’.

The focus of the Dr Rajan Committee was for ‘ensuring a balanced distribution of certain development funds to enhance the overall growth and progress of all states, particularly those lagging in specific development parameters’.

“The recommendations made by the committee were explicitly intended to guide the allocation of certain development funds from the Centre to the States. These recommendations were not meant to replace existing methodologies for devolution of taxes allocation. The committee's report clearly states that its framework should be used alongside other existing methodologies, including that of Finance Commission’s recommendations for share of tax devolution, for a holistic and fair allocation of resources,’’ he said.

The Chief Minister said the Finance Commission, which is constitutionally mandated to determine the distribution of tax revenues between the Centre and the States, operates independently of the committee mentioned above.

“The claim that the Finance Commission accepted the committee's report and that the committee headed by Dr Rajan influenced the reduction in Karnataka's tax share is unfounded and misleading,’’ he said

He also explained that the subsequent 14th Finance Commission report (submitted on 15 December, 2014), which came after the committee's recommendations (submitted in September 2013), proposed an increase in the devolution of taxes to Karnataka, from 4.328% in the 13th Finance Commission to 4.713% in the 14th Finance Commission.

“This increase clearly contradicts the allegations that the committee's report led to a reduction in Karnataka's tax share. Karnataka’s tax share was actually reduced by the 15th Finance Commission which was constituted by Narendra Modi government and whose report was submitted on November 2019. Was the 15th Finance Commission constituted in 2019 by Narendra influenced by some committee which gave a report in September 2013?’’ the Chief Minister asked.

In a direct charge that ‘BJP Betrays Karnataka’, the Chief Minister said it is ‘deeply disheartening to witness the extent to which B Y Vijayendra and other BJP leaders from Karnataka are willing to forsake the very heart and soul of Kannadiga pride, all for the sake of winning approval from BJP high command’.

“Their (BJP leaders) actions reveal a chilling indifference, as if the act of deceiving their own people doesn't weigh on their conscience. This act of betrayal, this glaring abandonment of honesty, tears at the very essence of Karnataka Pride,’’ he added.





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Comment on this article

  • KS Mayya, Mangalore/Bangalore

    Mon, Feb 12 2024

    Raghuram Rajan (RR) represents the pinki woke culture and teaches in prestigious US university. And to his credit, Fed Chairman's take of US economy as "flexible & resilient". But Fed Chairman also is worried about unmanageable debt that they are passing on future generations. RR being RBI governor under Congress government is understandable. He must now focus his efforts and theory he represents to save the US economy. It is good that he ceased to continue as RBI head and let us leave it at that. The idea of bundling debt into bonds that sell is still difficult to understand for an economy which has for now been for ages surviving on this. If UPI can be credited to RR under UPA, in the same coin, why don't you give UPA credit for CAA?

    DisAgree Agree [2] Reply Report Abuse

  • Rajan, Mangalore

    Mon, Feb 12 2024

    Raghuram Rajan gave a parting gift, before being replaced as Governor -- who was not in the good books of BJP ----- He made the smartphone into a bank with UPI--(He actually ensured India moved towards cashless economy --- with the launch of unified payment interface (UPI), _)--- Although Demonetisation was a big failure and led to hardships -- Gov RAJAN introduced UPI -- a big game changer on how today people make payments -- we are still however a Cash economy -- -- a long way to go to be cashless ---- but this move has helped enormously for many -- Day to day ----

    DisAgree [3] Agree [6] Reply Report Abuse

  • Rajan, Mangalore

    Mon, Feb 12 2024

    Governor Rajan was the RBI governor -- The Finance commission set up by the Govt of the Day -- hence ruling dispensation --BJP ---was responsible on Taxation matters --and gov Rajan had obviously no role -- The Reserve bank's role is entirely different ---- Either there are too many Duffers in BJP or deliberate twist as now only scope for BJP is to FIND FALL GUYS -- as failure in administration -- Price rise -- farmers protest -- at the gates of Delhi -- ART 370 -- J& K -- not much traction -- CAA -- trouble in UTTRAKHAND -- many cancelled holidays to Nainital etc -- All over mess --

    DisAgree [3] Agree [7] Reply Report Abuse

  • Yogi, Mangalore

    Tue, Feb 13 2024

    Mr Rajan, you have got everything wrong. First, what has farmers protest, CAA, Art.370, etc got to do with RR ? Second , did RR's UPI lift India out of poverty ? Third , black money was weeded out due to demonetization. Finally, RR had grown too big for his boots , so he was shown the door. Before I end, may I ask you ,who set the precedent of slave bowing before his master ?

    DisAgree [1] Agree Reply Report Abuse

  • S.M.F, Dxb /Mlore

    Mon, Feb 12 2024

    Baap Numbri Beta Dus Numbri.....

    DisAgree [4] Agree [14] Reply Report Abuse

  • G R PRABHUJI, Mangalore

    Mon, Feb 12 2024

    What knowledge BYV having to comment on Raghuram Ranjan?? It's a shame on BJP. Yaddi and Bomma joined together and they losed the ground in last election. Now this man has started to please Modiji. Karnataka is such a place all voters are educated and literate, they know whom to vote. If they listen to these leaders, surely all will lose their benefit which all are enjoying including BJP members who have not voted for Congress.

    DisAgree [5] Agree [26] Reply Report Abuse

  • Dinesh, Dubai

    Mon, Feb 12 2024

    Jailed, corrupt CM's son commenting nonsense....

    DisAgree [6] Agree [34] Reply Report Abuse

  • Itika, KSA

    Mon, Feb 12 2024

    These politicians play the blame game worse than siblings in every family.

    DisAgree [4] Agree [26] Reply Report Abuse

  • real kujuma, kodial

    Mon, Feb 12 2024

    like his father kalla yeddy now the son also began barking nonsense...dont care Sidda Sir...let your great rule continue....

    DisAgree [8] Agree [42] Reply Report Abuse

  • Jossey Saldanha, Raheja Waterfront

    Mon, Feb 12 2024

    We cannot trust BY Vijayendra ...

    DisAgree [6] Agree [36] Reply Report Abuse

  • S.M.F, Dxb /Mlore

    Mon, Feb 12 2024

    BYV + BJP too

    DisAgree [4] Agree [21] Reply Report Abuse

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Title: BY Vijayendra ‘wrong’ in blaming Raghuram Rajan for slashing Karnataka’s tax revenue: CM

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