Karnataka CM Siddaramaiah has criticised the Centre and Bharatiya Janata Party over the recent allocation of Goods and Services Tax funds. Siddaramaiah said the allocation as a mockery of the hard work put in by Kannadigas.
According to a post on social media X, the NDA government’s neglect of Karnataka continues unabated. Out of the Rs 1,73,030 crore allocated to states, Karnataka received only Rs 6,310 crore, a significant decrease from previous distributions.
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Siddaramaiah lashed out at the BJP and accused the Centre of depriving Karnataka of its dues. “Why should Karnataka, contributing Rs 4.5 lakh crore annually to the national exchequer, receive only Rs 45,000 crore in tax share and RS 15,000 crore in grants—a mere 13 paise for every rupee we contribute?” Siddaramaiah said, terming it a betrayal of the people of Karnataka.
He added: “This injustice mocks every hardworking Kannadiga. Despite making up only 5% of India’s population, Karnataka contributes 8.4% to the nation’s GDP. We rank second in GST collection and lead the nation in GST growth with an impressive 17% increase. However, despite Karnataka’s significant contributions, the Union Budget has doubled from Rs 24.42 lakh crore in 2018-19 to Rs 48.20 lakh crore in 2024-25, yet Karnataka’s share has stagnated.”
In 2018-19, Karnataka’s tax share amounted to Rs 46,288 crore. However, in 2024-25, the state was allocated only Rs 44,485 crore in taxes, along with an additional Rs 15,299 crore in grants. This discrepancy raises concerns about the fairness of the distribution of funds, especially considering Karnataka’s annual contribution of Rs 4.5 lakh crore to the national exchequer.
The CM said it is disheartening to receive only Rs 45,000 crore in tax share and Rs 15,000 crore in grants, which equates to a mere 13 paise for every rupee contributed by the state. This disparity becomes even more apparent when comparing it to the funds allocated to states with well-documented issues of corruption such as Uttar Pradesh (Rs 31,039 crore), Bihar (Rs 17,403 crore), Madhya Pradesh (Rs 13,582 crore), and Rajasthan (Rs 10,426 crore). One cannot help but question if Karnataka is being unfairly penalized for its achievements in governance, GST growth, and overall development. Siddaramaiah raised these valid concerns, prompting a critical examination of the state’s funding allocation.
Siddaramaiah criticised BJP leaders for their silence regarding the decrease in the state’s share, stating that the lack of response from the Opposition is seen as a betrayal to the people and their desires in Karnataka.
“Is Karnataka being punished for excelling in governance, GST growth, and development?” the Chief Minister asked. “As the nation celebrates Sankranti, Karnataka, despite its unparalleled contributions, is left to fend for itself. While our tax money builds the coffers of BJP leaders in UP, Bihar and MP, our people suffer during floods, droughts, and other crises.”
The allegations made by the Karnataka Chief Minister against the Centre were refuted, with the Centre asserting that the Finance ministry was not responsible for the shortcomings of the Siddaramaiah government. The government also disputed Siddaramaiah’s claim that the 15th Finance Commission reduced Karnataka’s tax share from 4.713% to 3.647%, resulting in a loss of Rs 79,770 crore for the state over a five-year period.