NEW DELHI: Finance minister Nirmala Sitharaman on Monday countered the Congress’s offensive against the central government over the devolution of funds to the states, saying it was a “politically-vitiated narrative” that “vested interests” were seeking to propagate.

“This is just not a possibility that any finance minister can intervene to say that ‘I don’t like this state, stop payment’. No way. It can’t happen that way. The system is well placed,” Sitharaman said, replying to Congress leader Adhir Ranjan Chowdhury in the Lok Sabha who accused the central government of seeking to settle political scores by holding back funds to states such as Karnataka.

Chowdhury said there was a general perception that non-BJP-ruled states are deprived of their legitimate dues and cited Karnataka as an example. “Is it true that the State of Karnataka has been deprived of its legitimate dues? It was all hunky dory six months back, what happened now?” he asked.

Chowdhury’s accusation came ahead of a planned protest by Karnataka’s ruling lawmakers including chief minister Siddaramaiah in Delhi on February 7 to seek more money for the state. On Sunday, Siddaramaiah said Karnataka had faced significant challenges “with a reduced tax devolution share post the 15th Finance Commission, resulting in a loss of over ₹45,000 crore in the last four years”.

Sitharaman said that no Union finance minister could play with the Finance Commission’s recommendations.

“This apprehension that some states are being discriminated against is a politically-vitiated narrative which, I am sorry to say, vested interests are happy to go about saying,” she said during Question Hour.

Sitharaman also spotlighted Adhir Ranjan Chowdhury’s remarks that suggested the problems in Karnataka started six months ago.

“Adhir Ranjanji said that till six months ago it was all hunky dory… Till six months ago if it was hunky dory, what’s going wrong now? Have you started spending on items on which you were not supposed to spend? I’m not even questioning that, do spend it. But don’t put the blame on me. Don’t blame the Centre,” she said, referring to Siddaramaiah being sworn in as chief minister in May 2023 after the BJP lost the state elections.