In a pointed attack on fiscal federalism, Karnataka Home Minister G Parameshwara declared Wednesday that southern states are victims of systemic bias in fund devolution. The remarks came hours after CM Siddaramaiah backed Tamil Nadu CM MK Stalin’s advocacy for robust Centre-state ties, zeroing in on skewed GST compensation and infrastructure largesse.
Major projects—think high-speed rail corridors and massive airports—routinely bypass the south, landing in northern laps despite robust economic contributions from states like Karnataka, he lamented. ‘We fork over the second-largest GST slice, yet get crumbs in return. This collective outcry demands justice,’ Parameshwara told journalists in Bengaluru.
Countering barbs over the state’s debt trajectory, the minister laid out the numbers. ‘Fiscal prudence is our mantra. Borrowing stays under the 25% threshold, making us southern India’s most conservative. Maharashtra’s 95 lakh crore debt pile dwarfs ours—data doesn’t lie.’
On brewing rumors of a Siddaramaiah-Shivakumar rift, Parameshwara waved them off. The deputy CM’s dinner invite to party leaders? ‘A constructive move in democracy’s playbook, echoing practices since the 1952 polls. It promotes maturity and cohesion.’
Parameshwara’s salvo underscores a deepening north-south divide, fueled by perceptions of unequal resource flows. With southern economies powering national growth, these allegations could reshape coalition dynamics and budget negotiations ahead, urging a reevaluation of India’s federal compact for equitable progress.