Finance Minister Nirmala Sitharaman and Congress MP Adhir Ranjan Chowdhury sparred in Parliament Monday over allegations non-BJP state governments – specifically those in South India – are “deprived of their (financial) dues” and allocations, including those related to GST compensation.

An incensed Ms Sitharaman hit back, explaining “devolution to states… happens as per Finance Commission recommendation”, and that she had no “discretion” in allocation of tax revenues. She also slammed the allegations as a “politically-vitiated narrative” being spread by “vested interest groups”.

The exchange came at the tail end of a debate on the “financial viability of states/union territories”, and was triggered by Mr Chowdhury, the Congress’ leader in the Lok Sabha accusing Ms Sitharaman, and the ruling BJP, of “arbitrary” and “discrimination” position towards opposition-ruled states.

“The latest example is Karnataka… where entire ministry has been agitating against the indiscriminate attitude of your administration. Few months ago everything was hunky dory. But, after the new government (came), since then trouble has started,” the Congress leader began.

He was referring to comments by Karnataka Chief Minister Siddaramaiah last week about “step-motherly treatment of the state – which the Congress won in the May 2023 election – in 2024 Interim Budget. The Chief Minister and his deputy, DK Shivakumar hit out over a lack of allocations by Ms Sitharaman, and alleged revenue loss of over Rs 11,000 crore under the 15th Finance Commission.

The Karnataka leaders are due to hold a protest in Delhi on Wednesday.

The Finance Minister began with a short explainer on GST and its three primary components – SGST, or State Goods and Services Tax; IGST, or Integrated Goods and Services Tax (levied on interstate supplies of goods and/or services); and CGST, or Central Goods and Services Tax.

“… SGST goes 100 per cent to states… this is automatic provision. IGST involves interstate payments (and) is periodically reviewed (and,) because states should get money in hand, it is divided and then periodically adjusted to actuals. CGST is divided as per Finance Commission,” she told Parliament.

“I want to humbly submit… so Adhirji please understand… I don’t have the right to change (allocations) as per my whims and fancies… or because I like a state (government) or if another is ‘against’ my party politics. No way!” Ms Sitharaman said decisively, “I have no role…”

“I have to follow 100 per cent (the Finance Commission recommendations) and that is what every Finance Minister does. When there is a recommendation, it is done without fear or favour.”

“So this apprehension… that some states are being discriminated against… is a politically-vitiated narrative that, I am sorry to say is (because) vested interests are happy to go about saying it.”

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An increasingly furious Ms Sitharaman shot down the claims, saying, “There is just no possibility of any Finance Minister intervening, and saying, ‘I don’t like this state, so stop payment. No way.”

The Finance Minister then ripped into the Congress leader’s “hunky dory” claims.

“Adhirji is saying that till six months ago everything was ‘hunky dory’. If that was so then what went wrong? Have you started spending on items you are not supposed to spend? I am not questioning that… but you spent it, so don’t put the blame on centre, because it goes by the rule book.”

Ms Sitharaman, who seemed to be increasingly exasperated by Mr Chowdhury’s interruptions, concluded by trying to shout down the Congress leader, saying, “I can’t do anything if Finance Commission doesn’t tell me to do… Adhirji, please don’t imagine I have any discretion.”

“Please talk to the Finance Commission…” she said with a namaste as she sat down.

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The Champai Soren government in Jharkhand comfortably passed the majority test in Assembly this afternoon, getting 47 votes in the 81-member Assembly. With one MLA resigning last month, the majority mark in the Assembly was 41.

The ruling coalition comprising the Jharkhand Mukti Morcha, the Congress and the Rashtriya Janata Dal had earlier expressed confidence that they would sail through. Twenty-nine votes were cast against the Champai Soren government.

The floor test in Jharkhand Assembly was held in the wake of dramatic developments in the tribal-dominated state, starting from former Chief Minister Hemant Soren’s late-night resignation, followed by his arrest by the Enforcement Directorate, on January 31. Hemant Soren is being investigated by the central agency in a money laundering case. The JMM leader has denied the allegations and termed them a BJP conspiracy.

The ruling JMM-Congress coalition backed Champai Soren to succeed Hemant Soren. The long-time aide of Shibu Soren took oath as Chief Minister on Saturday with two deputies.

Hemant Soren was present in Assembly for the floor test with court’s permission. In his remarks ahead of the floor test, Champai Soren said he would his government like “Hemant Soren part – II”.

In his emotionally charged speech, Hemant Soren hit out at the BJP-led central government, alleging a “slow-cooked” conspiracy to jail him. He did not spare the Governor either, accusing the Raj Bhavan of involvement in this conspiracy. Earlier, the JMM and Congress had questioned the delay in the Jharkhand Governor inviting Champai Soren to form the government, despite the ruling coalition staking claim soon after Hemant Soren’s resignation. 

The former Chief Minister also dared the BJP to produce evidence against him in the land irregularities case he has been arrested in. “Show me the proof and I will quit politics,” he said.

In a strong charge for tribals, Mr Soren attacked the BJP and accused it of looking down on backward communities. “We left the jungle, came and sat next to them and their clothes are soiled. They see us as untouchables. If left to them, we would be back in the jungle,” he said.

Mr Soren targeted BJP leaders from Jharkhand “who bow before those with feudal mindset”. “It has been 24 years since Jharkhand was formed. Which party was in power for the longest time? All corruption started in 2019?”

“They do not want tribals to rise. They do not want us to become judges, IPS or IAS officers. They do not want us to become leaders,” he said, adding that he knew that hurdles will be created to ensure that he does not complete his five-year term.

Shankar Mahadevan and his team from Shakti achieved a significant milestone for India at the 66th Annual Grammy Awards. Shakti, a group consisting of John McLaughlin, Zakir Hussain, Shankar Mahadevan, V. Selvaganesh, and Ganesh Rajagopalan, received the Grammy Award for their project, The Moment. The album was honoured as the Best Global Music Album. Shankar and his fellow musicians attended the Grammys to receive the accolade. AR Rahman has extended his congratulations to the team. 

On Monday, the former Grammy winner AR Rahman took to social media and shared a selfie featuring Shankar Mahadevan, Zakir Hussain and V. Selvaganesh from the awards show. 

Check out the picture here:

Sharing the picture, he wrote, “It’s raining Grammys for India …Congrats Grammy winners #ustadzakirhussain (3grammys) @shankar.mahadevan (first Grammy) @selvaganesh (first Grammy ).”

 Besides Shakti, Zakir Hussain and Rakesh Chaurasia also won two awards at the Grammys for Best Global Music Performance and Contemporary Instrumental Album.

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