South produces more but gets pittance; hence idea of economic alliance: Rayareddi
Karnataka Congress legislators to stage protest in Delhi on Feb 7 against the financial injustice done by the Centre, says CM's economic adviser
Basavaraj Rayareddi, the economic adviser to Karnataka Chief Minister Siddaramaiah, has mooted the idea of an Economic Alliance of Southern States because they contribute a greater share to the national economy and yet their taxation gains are being distributed to “non-yielding states” in North India and the Centre is doing injustice by reducing tax devolution, he told The Federal.
Wait for nod
“I have proposed the idea of an Economic Alliance of Southern States and discussed it with Chief Minister Siddaramaiah. But it’s currently just an idea, and we need to wait for the Chief Minister’s approval,” Rayareddi said.
Speaking to The Federal, he highlighted that Karnataka ranks second in taxation gains at the national level. Other southern states like Tamil Nadu, Kerala, and Andhra Pradesh also contribute a high share to the national economy, he added.
Need for action
“Our taxation gains are being distributed among the non-yielding states in northern India. We have no objection to it, as we must respect the federal structure. But the Centre is doing injustice by reducing tax devolution. Hence, I have mooted the idea of an economic alliance of southern states,” he explained.
“As an initial step, Karnataka needs to take action in this regard. To begin with, Karnataka Congress legislators will stage a protest in New Delhi on February 7 against the financial injustice done by the Union government. Once Chief Minister Siddaramaiah approves the proposal, we will decide on involving the other southern states to take further steps in this direction,” he added.
On delimitation
When asked about the delimitation of Lok Sabha constituencies and the potential increase in the number of MPs from northern states, posing a threat to the federal structure, particularly for the southern states, Rayareddi noted that population count in the delimitation process could be problematic for southern states.
“We have to wait until that process begins. The primary concern is that we produce more, and it is distributed to other states. In the federal structure, we must support weaker states, but it doesn’t mean we should receive only a pittance compared to what we have given to the Centre,” he asserted.
