Karnataka facing severe financial injustice despite high GST collection: Minister

PTI, Nov 1, 2024, 6:49 PM IST

Karnataka Health Minister Dinesh Gundu Rao on Friday expressed concerns over the state’s financial hardship and claimed that despite being a top contributor to GST, the state has not received its rightful share.

The minister, who in-charge of Dakshina Kannada, said that even though Karnataka ranks second in the country for GST collection, the state has not received its rightful share from the Finance Commission, resulting in severe financial injustice.

“The power to impose taxes suitable for our state’s needs has also been taken away under the GST regime, leaving us in a disadvantaged position. No state should have to endure this,” he said, during the ‘Karnataka Rajyotsava’ celebrations held here.

Rao further stressed the imbalance in national representation, pointing out that Karnataka’s successful population control efforts have ironically reduced the state’s influence.

“Post-independence, Karnataka has been successful in population control. However, states with larger populations, particularly Hindi-speaking states, have received more Lok Sabha seats. This has reduced the representation of southern states, including Karnataka, at the central level. We must seriously contemplate this imbalance, which threatens the voice of the people of South India,” he said