CM Fires Back at Governor, Accuses Centre of Fiscal Mismanagement in State Assembly

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Karnataka Chief Minister Siddaramaiah delivered a scathing critique of the Union government's fiscal policies during his formal reply to the Governor's address in the State Assembly. He accused the Centre of weakening federal principles and depriving the state of funds, citing a significant loss of ₹2 lakh crore from 2020 to 2025 due to the end of Goods and Services Tax (GST) compensation. Siddaramaiah began by taking issue with the Governor's delivery of the joint-session address, saying it was a departure from constitutional norms. He framed the issue as institutional rather than personal, emphasizing that his opposition was to the Central government's actions. The Chief Minister also targeted BJP legislators, who had criticized his administration's welfare record. He pointed out that his government had implemented guarantee schemes and provided over ₹1.16 lakh crore to strengthen people's purchasing power. Siddaramaiah's critique focused on Karnataka's fiscal relationship with New Delhi, particularly the Centre's decision to end GST compensation. He argued that the state was being treated unjustly, citing disparities in allocations for local bodies and disaster relief. The Chief Minister also questioned the status of previously announced assistance for a major irrigation project, the Krishna Upper Stage project. He asked if the Union Finance Minister's announcement of funding had been followed through, and if the project had been declared a national project as promised. Siddaramaiah's speech was a defense of his administration's record and a criticism of the Centre's policies, which he saw as detrimental to the state's interests. He emphasized the need for constitutional procedures to be followed and for the Centre to respect the rights and autonomy of states.