Fierce Funds Faceoff: Centre vs States Over "Fiscal Injustice"

The politically sensitive matter of "fiscal injustice" raised by the Karnataka Congress before the Lok Sabha elections of 2024 are all set to become a flashpoint between the Centre and states. Karnataka Chief Minister Siddaramaiah has written to his counterparts in eight states, including those ruled by NDA, raising concerns over the devolution of taxes by the Central Government, claiming states like Karnataka that perform well in terms of GSDP are being penalised by the Centre for their performance, and that they receive disproportionately lower tax allocations.