FM Nirmala Sitharaman Refutes Karnataka's Claims of Tax Devolution Bias



Quick Summary
Union Finance Minister Nirmala Sitharaman has strongly denied allegations from the Karnataka government regarding unfair tax devolution, labelling the claims as baseless and an attempt to mislead voters. She stated that the central government's financial support to states, including Karnataka, has significantly increased and adhered to Finance Commission recommendations. Sitharaman urged educated voters to critically examine the data and compare the Centre's figures with those provided by the state.

Union Finance Minister Nirmala Sitharaman firmly rejected the Karnataka governments allegations of step-motherly treatment in tax devolution, describing the claims as baseless and aimed at misleading voters. During an informal interaction with citizens hosted by the Citizens Council on Wednesday, Sitharaman defended the Centres financial support to states. Step-motherly treatment would be an understatement compared to the 10 years of UPA rule. Between 2014 and 2024, the quantum given to states
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FAQ :

Yes, Union Finance Minister Nirmala Sitharaman firmly rejected the Karnataka government's allegations of "step-motherly treatment" in tax devolution, describing the claims as baseless.

She stated that the quantum of funds given to states between 2014 and 2024 has seen far greater growth than during the UPA rule and was delivered on time under each head.

She advised that educated voters must compare what is being said by the Centre and the state and check the data.

Yes, concerns were raised about states like Bihar and Andhra Pradesh being favoured over Kerala and Manipur. Sitharaman clarified that allocations were based on specific needs, such as Bihar's flood situation and Andhra Pradesh's national Polavaram project.

She assured Karnataka citizens that the Centre had adhered to the Finance Commission's recommendations and given what must be given, calling the accusations an attempt to muddy the waters.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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