Southern states allege GST bias, project neglect

Bengaluru: Karnataka home minister G Parameshwara on Wednesday alleged that southern states are facing financial discrimination, particularly in the allocation of GST shares and major infrastructure projects.

Speaking to reporters here in the wake of chief minister Siddaramiah endorsing his Tamil Nadu counterpart MK Stalin's stand on strengthening the federal structure in the country, Parameshwara said that big projects are often allotted to northern Indian states, while southern states are not given their due. "This concern is being voiced collectively. We are contributing the second-highest share of GST to the Centre. It is a legitimate demand," he stated.

Responding to criticism that the Congress-led government is taking excessive loans, Parameshwara said the state is well within the prescribed borrowing limits.


"There is a cap on borrowing. As per the rules, it has to be within 25%, and we are well within that limit. When absolute figures are considered, we are borrowing the least among the southern states. There are many states that have borrowed more than us. In Maharashtra, for instance, loans have crossed ₹9.5 lakh crore," he said. "We are well within our financial discipline," he added.

On the reported differences between chief minister Siddaramaiah and deputy chief minister DK Shivakumar, Parameshwara said such political developments are part of a democratic process. Referring to Shivakumar's announcement of a dinner meeting with party leaders, he said there was nothing unusual about it.

"In a democracy, since the first elections in 1952, chief ministers and leaders have hosted dinner meetings. There is nothing new in that. Shivakumar inviting everyone for dinner is a good development. It is a path towards showing restraint, which is positive," he said.