Chief Minister Siddaramaiah on Wednesday termed the State government’s five guarantees as “good economics” and said taxes are being collected from the rich for the empowerment of the poor.
In his reply to the debate on the motion of thanks to the Governor’s address , Mr. Siddaramaiah in the Legislative Assembly said: “I believe in good economics.” A sum of ₹52,009 crore has been set aside for implementation of five guarantees in the State Budget for 2024-25. “We are giving economic and social strength to the poor. This is good economics. This is the economics of self-respect,” he said.
“The five guarantees - Stree Shakti, Anna Bhagya, Griha Jyoti, Griha Lakshmi and Yuvanidhi - will cover the poor, Dalits, backward classes and minorities without discrimination on the basis of caste or on religious lines,” he said. “There are no middlemen in the delivery of guarantee schemes. All benefits reach the eligible beneficiaries’ account through DBT,” the Chief Minister said. “We will impose tax on rich people as per law and collected taxes will be used for the poor.” Mr. Siddaramaiah said the government kept ₹ 39,000 crore in 2023-24 for the flagship programmes.
‘What is Siddanomics?’
The Chief Minister said JD(S) leader and former Chief Minister H.D. Kumaraswamy had coined the term “Siddanomics” to describe his model of State development. “I don’t know what that is. There are no books like that. There is only good and bad economics. Is there Basavarajnomics? Kumaraswamynomics?” Mr. Siddaramaiah asked.
Former Chief Minister Basavaraj Bommai said Mr. Kumaraswamy has given a new brand to his model of economic development and the Chief Minister should take it as a compliment.
On corporate tax
Mr. Siddaramaiah, who has tabled 15 Budgets, said corporate tax was 30% during the UPA government, led by Prime Minister Manmohan Singh. Prime Minister Narendra Modi had reduced the corporate tax to 22.5%, he said, and asked, “In whose support is the BJP government?”
Mr. Siddaramaiah, who also holds the finance portfolio, rebutted the Opposition’s charge that the government had rolled out a “bundle of lies” through the Governor’s address to the legislature and said the Governor has spoken the truth. “Our guarantees have reached people. In fact, people know that there is no substance in the Opposition’s allegations.”
On Opposition Leader in the Assembly R. Ashok’s charge that the Congress government was a “broken-down vehicle”, Mr. Siddaramaiah said the BJP administration between 2019 and 2023 was “a hate-filled, rusted bus that emitted poisonous smoke” and the people voted out the BJP. He also said that the law and order was good in the State and the state had attracted ₹77,000 crore investment during the last nine months.
Charge against Centre
Mr. Siddaramaiah reiterated his charges against the Central government on devotion of taxes, non-release of drought relief and non-release funds for the Upper Bhadra Project. A whopping ₹4.3 lakh crore taxes was collected from the State in 2023-24 but the State was expecting only ₹50,027 crore, the Chief Minister said.
Mr. Siddaramaiah also took a dig at Mr. Kumaraswamy on his remark that the government adopted a confrontationist approach with the Centre and said the State has every right to seek justice under the federal government. The State has been receiving only ₹13 for every ₹100 collected from the people in the form of income tax, GST, cess and surcharges, he said.
The State government had written 17 letters to the Union Ministers but it had received reply to only one letter on seeking drought relief. “How can we call it confrontation?” The entire house should demand drought relief from the Centre, he said. Out of 236 taluks, 223 taluks have been declared as drought in the State.
The House passed the motion of thanks to the Governor’s address. The Opposition BJP members shouted slogans against the Government and termed the Chief Minister reply as a “political speech” ahead of Lok Sabha elections and staged a walked out. The JD (S) members too followed the BJP.
