Karnataka, Kerala bring campaign against ‘financial atrocities’ of Centre to Delhi

• The Karnataka government, led by CM , is set to stage a sit-in protest at Jantar Mantar in Delhi
• denouncing the alleged biased fiscal policies of the Centre.

Solidarity of other States with Karnataka

• Kerala Government will also join the protest against the Centre's neglect of the state's revenue rights.
• The Tamil Nadu Government also supported a united front against what they perceive as unjust fiscal policies by the Centre.

Key Issues Raised

• Karnataka's protest emphasizes the perceived financial injustices inflicted on the state by the Central government
• The Government cited reductions in revenue shares and faulty GST implementation.
• Kerala's grievances center on the alleged slashing of its borrowing limit and reductions in revenue shares,
  • Prompting the state to take legal action against the Union government.
• Tamil Nadu accuses the Centre of exploiting its powers to limit state borrowing capacity
• It alleged unfairly imposition of restrictive conditions on funding for state-owned enterprises by the Centre Government.
• These states allege discriminatory fiscal policies favoring BJP-led states.
• All protesting states demands for a collective response to uphold the principles of fiscal federalism.

Response of Centre Government

• Tax devolution follows the recommendations of the Finance Commission.
• The Centre Government alleged the political grounds for such protest instead of having any some economic basis.

Prelims Takeaway

• Fiscal Federalism
• The Right to Protest