MYSURU: Criticising the Centre’s move to stop payment of GST compensation to states, Opposition leader Siddaramaiah said it would serve a “death blow” to the federal system and push the states towards bankruptcy. He said the Centre should extend all support to the states, as many are hit by a resource crunch and will need to find solutions to raise revenue.

Siddaramaiah said on Thursday that he would demand that the government pay GST compensation so that they can focus on development. “The Centre cannot wash its hands of remitting funds, citing a decline in revenue due to economic slowdown or due to Covid-19, as it is the commitment of the Centre to give GST component to states,” he said. His criticism comes in the wake of the GST Council, which is likely to meet in August, seeking suggestions from states on proposals to raise funds. He accused BJP of pushing the ordinance on Land Reforms Act with the intention of helping capitalists and the corporate sector buy vast tracts of land. He said the motive was to help housing societies in Bengaluru Urban and Rural districts.

The Congress, that has decided to expose the government agenda behind the ordinance, kept its options open to take up a legal battle, as it will leave small farmers landless. Terming one year of the B S Yediyurappa government a “total failure”, he said that the government came to power illegally and had no moral right to celebrate. There is no governance in the state for over a year, he said. He also charged the government of failing to handle the pandemic, and alleged large-scale corruption in the procurement of equipment.

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