Southern states, comprising Tamil Nadu, Kerala, and Karnataka, have launched a concerted effort to challenge the central government's handling of fund allocation, accusing it of unfair practices in distributing funds derived from central tax revenues. The issue has escalated in recent days, with leaders from these states rallying against what they perceive as discriminatory treatment.
The discontent stems from allegations that the central government, despite receiving a significant portion of its funds from southern states like Tamil Nadu through taxes, fails to equitably redistribute these funds back to the states. This perceived injustice has prompted vocal opposition from leaders across the southern region.
In a move to address these grievances, Karnataka Chief Minister Siddaramaiah spearheaded a protest in New Delhi, demanding the release of Rs 1 lakh crore to the state. Joined by Deputy Chief Minister DK Shivakumar, state ministers, and MPs, Siddaramaiah emphasized that the protest transcended party lines, asserting that it was a collective stand against perceived injustice.
The protest at Jantar Mantar in Delhi served as a platform for Siddaramaiah to voice his concerns over the federal system's failure to ensure equitable distribution of funds from tax revenues by the Centre to the states. He underscored the significance of this fight for Karnataka's future and the well-being of its residents.
Siddaramaiah's efforts to garner support extended beyond party lines, as he invited BJP workers from Karnataka to join the agitation. Additionally, he extended invitations to Union Finance Minister Nirmala Sitharaman and Parliamentary Affairs Minister Pralhad Joshi from Karnataka to engage in discussions on the matter.
However, Minister Pralhad Joshi accused Siddaramaiah of indulging in cheap politics, a sentiment echoed by Finance Minister Nirmala Sitharaman, who dismissed Siddaramaiah's allegations as politically motivated.
Despite facing pushback from the central government, leaders from southern states remain steadfast in their pursuit of justice. Kerala Chief Minister Pinarayi Vijayan has taken the matter to the Supreme Court, filing a petition to uphold the principle of fiscal federalism and challenge what he perceives as arbitrary control over state finances by the central government.
Tamil Nadu Chief Minister MK Stalin has expressed solidarity with Kerala's legal action, commending the state for its efforts to challenge what he describes as the Centre's stifling of state finances. Stalin underscored the urgent need to address what he sees as indirect constraints on state finances imposed by the central government.
In response to the escalating tensions, discussions are underway to form a 'Southern States Economic Alliance.' Spearheaded by Karnataka Chief Minister Siddaramaiah's Economic Advisor Basavaraj Rayareddy, the proposed alliance aims to unite southern states in advocating for equal rights and opportunities in fund allocation.
While DMK-ruled Tamil Nadu, CPM-ruled Kerala, Congress-ruled Karnataka, and Telangana are expected to join forces, the YSR Congress-BJP coalition led by Jagan Mohan Reddy in Andhra Pradesh remains cautious due to pending legal issues involving Jagan Mohan Reddy.
Political observers note that the united front presented by the southern states could pose a significant challenge to the BJP in the upcoming parliamentary elections.
The collective stance of these states signals a potential shift in political dynamics, highlighting the growing discontent with the central government's fund allocation policies and setting the stage for heightened political activism in the region.
This article was written by Journalist A Palaniappan and appeared in the vikatan.com. Here is the english version.