#SouthTaxMovement | Call for 'Economic Alliance of Southern States'

Karnataka Congress leaders are looking at forming a forum for southern states to create an "economic alliance" to guarantee equal distribution of resources from the Centre.

This follows Congress MP DK Suresh's controversial statement that southern states would be forced to demand a “separate nation” if the “injustice” in distribution of funds continues. Various parties are coming together to discuss the possibility of forming a congregation, said a Times of India report.

Karnataka Chief Minister Siddaramaiah's economic advisor, Basavaraj Rayareddi, said the proposal to form an "Economic Alliance of Southern States" was on the cards, the report further said.

“The objective of the proposed forum is in line with the idea of federalism, where all states are assured of equitable rights and opportunities. The southern states need a powerful platform since their voices are not being heard,” Rayareddi said, as quoted by TOI. 

15th Finance Commission

On Sunday alleging injustice to Karnataka by the Union government with a reduction in tax devolution, Siddaramaiah said this has resulted in a loss of over Rs 45,000 crore to the state in the last four years.

He also claimed that the taxes paid by Kannadigas were not useful for the state's difficult times, and the money was going to northern states.

"Karnataka has faced significant challenges with a reduced tax devolution share post the 15th Finance Commission, resulting in a loss of over Rs 45,000 crore in the last 4 years. This injustice cannot stand," Siddaramaiah said on Sunday.

"We stand united in demanding fair treatment and justice for Kannadigas to secure our state's welfare," he said in a post on 'X' with the hashtag "#SouthTaxMovement".

The CM's comments come ahead of all Congress lawmakers (also MPs) from the state, including Siddaramaiah, staging a protest in New Delhi on February 7, against the 'injustice' to Karnataka by the Union government when it comes to tax devolution and grants-in-aid.

Tax outflow

Further extending support to campaigns on social media condemning the "injustice" being done to Karnataka by the Central government in tax devolution, the Chief Minister said, "the taxes paid by Kannadigas are not useful for our difficult times and it (money) is going to northern states."

He said, "The northern states, which are indebted to taxes paid by southern states, can never be a model for us. Everyone should get over this false idea. Karnataka, which is building a strong nation with hard work, is a model for India." Thanking the people of the state who have raised their voice for justice, he said, adding "I am with you, if all our voices are united, it will be heard till Delhi." PTI