Centre has no role except obeying to finance commission: Sitharaman on South share of tax dues

Bengaluru (Karnataka) [India], February 28 : The central government has no role to play except for obeying the finance commission, Union Finance Minister Nirmala Sitharaman said in categorical words on allegations that southern states, in particular, are upset with the Centre for not sharing as much as taxes they earlier used to.

"If each of the southern states for their own uniqueness, for their own strengths, if they put the arguments well and convincibly with data in their hands. (It is) more to promote their own strengths and highlight the challenges that they face. The finance commission is going to come up with a formulation," Sitharaman said in an interview to The Indian Express.

Karnataka in particular has been complaining of having not received their deserved tax dues from the centre. Karnataka CM Siddaramiah had led a protest against the Union Government in Delhi on February 7. The protest was against what the southern state termed step-motherly treatment to it by the centre.

Seeking to allay apprehensions around tax devolution to some states, Sitharaman had during the recent Budget session assured that the government will fulfil whatever has been recommended by the Finance Commission.

Union Finance Minister Nirmala Sitharaman had rubbished allegations that the non-BJP states are being deprived of their legitimate tax and GST dues.

Sitharaman, speaking in the Lok Sabha, during the recent Budget session, termed the allegations to be a "politically vitiated narrative" that is being propagated by some vested interest groups.

"...I don't have the right to change as per my whims and fancies, that I like a state or another state, it is against my party politics. No way, I have no role I would have to it follow rules 100 per cent, and that's what I have done," Sitharaman had responded, as she explained the procedure of how devolution of taxes to the states is decided upon by the Finance Commission.

"Finance commission gives recommendations which I have to implement, it is done without any fear or favour or anything like that. So this apprehension that some states have been discriminated against is a politically vitiated narrative, which I am sorry to say, vested interests are happy to go about saying it. There is not just a possibility that any finance minister can intervene and say 'I don't like this state, stop payment'," she added.

Devolution to the states happens in direct tax matters, as per the recommendations given by the finance commission.

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