Mysuru, Oct 3 (NationPress) Karnataka's Chief Minister Siddaramaiah announced that his administration will pursue legal measures to ensure the retrieval of funds, following the recent Central government's move to simplify GST, which is projected to result in a loss of approximately Rs 15,000 crore for the state.

"We will pursue legal intervention to reclaim the funds," CM Siddaramaiah stated, indicating that the Centre's decision was influenced by the forthcoming elections in Bihar.

During a press interaction at his residence in Mysuru on Friday, he expressed concern that the Central government, which implemented GST in 2017 and established the rates, has been collecting elevated rates for the past eight years. “Will the government now refund the excess GST collected from the populace? The Centre is now decreasing the GST rates it had previously raised and is congratulating itself for it. They shouldn’t claim that the GST reductions are due to the Bihar elections,” he remarked.

Addressing the deficit in Central grants, he highlighted that out of an estimated Rs 17,000 crore due from the Centre, only Rs 3,200 crore has been disbursed to Karnataka. While 18 percent of Central funds are allocated to Uttar Pradesh, Karnataka receives merely 3.5 percent.

“Despite contributing Rs 4.5 lakh crore in taxes to the Centre, we only receive 14 paise per rupee. The special grants recommended by the 15th Finance Commission, which include Rs 5,490 crore for the Commission, Rs 3,000 crore for lake development, Rs 3,000 crore for road construction, and Rs 5,000 crore for the Bhadra dam project, have not been released. A total of Rs 17,000 crore in grants has been withheld. If necessary, we will seek legal intervention again to secure these funds,” he added.

CM Siddaramaiah also mentioned that despite the constraints of limited Central funds to cover expenditures under the state’s five guarantees, the government would face this challenge with determination.

"The simplification of GST has led to increased losses for states. Karnataka is expected to face an annual loss of Rs 15,000 crore. The Central government provides GST compensation based on the advantages of NDA states. Karnataka’s BJP MPs only laud Prime Minister Narendra Modi; they neglect the interests of the state,” he noted.

When asked about the status of the caste survey in the state, he confirmed that surveys encompassing around three crore individuals from 80 lakh households have been completed. The survey of 1.8 crore households is anticipated to conclude by October 7, with further decisions to be made based on the results.

In response to Union Minister Pralhad Joshi’s assertion that the survey was aimed at preventing vote transfers and caste manipulations, Siddaramaiah urged Joshi, as a Central minister, to clarify the intent behind the caste survey conducted by the Centre.

“Is the Central government planning to divide people by caste and religion? In Karnataka, economic, social, and educational surveys are being undertaken to understand the conditions of the populace. Previously, caste data like Brahmin, Christian, and other categories were included in the Kantraraju report. If individuals voluntarily disclose their castes, the government bears no responsibility. The Commission has eliminated these caste categories from the record. Hence, the Commission will only collect voluntary data. There’s no intention to divide people by caste. The BJP is misleading the public for political gains,” he stated.

Regarding Leader of Opposition R. Ashoka’s claim that the government would be deemed ineffective if it fails to resolve farmers’ issues, Siddaramaiah remarked, “While Ashoka is the opposition leader, his comments reflect the directives of the RSS. His statement is politically motivated,” he concluded.