3 months ago
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Chief Minister Siddaramaiah connected Sunday said that Karnataka is acceptable to suffer ₹10,000 crore to ₹15,000 crore annually owed to the 16th Finance Commission fixing the State’s stock of divisible taxes astatine 4.13%.
While the full stock goes up from 3.64% successful the 15th Finance Commission, the 16th Finance Commission’s proposal is inactive little than that of the 14th Finance Commission, which fixed the stock astatine 4.71%, the Chief Minister said.
“This is simply a highly disappointing Budget and an arsenic disturbing result of the Finance Commission’s recommendations. Karnataka’s stock of divisible taxes has been reduced to 4.131%, down sharply from 4.71 % nether the 14th Finance Commission. This is not an isolated determination but portion of a accordant signifier of sidelining Karnataka contempt its beardown economical publication to the nationalist exchequer. This volition impact the State’s capableness to put successful welfare, infrastructure, irrigation, and development,” the Chief Minister told presspersons successful Kalaburagi, offering his absorption connected the 2026-2027 Union Budget.
“When Karnataka’s stock successful the divisible excavation of cardinal taxes fell from 4.71% nether the 14th Finance Commission to 3.64% nether the 15th Finance Commission, the estimated nonaccomplishment was implicit 23% successful revenue,” helium pointed out.
“Karnataka has been handed nothing, conscionable the accustomed bare pot. Not lone Karnataka, the full South (India) has been ignored,” Mr. Siddaramaiah said, describing it arsenic a “corporate-style Budget” filled with statements but devoid of factual plans, allocations, oregon semipermanent direction.
Expressing disappointment, Mr. Siddaramaiah said that the Union authorities has chosen to clasp devolution astatine 41% without acknowledging the steadily expanding fiscal responsibilities of States. “We had legitimately expected the States stock to beryllium accrued to 50% arsenic a substance of fairness and cooperative federalism. “Despite Karnataka’s beardown publication to the nationalist GDP and taxation kitty, fiscal justness has repeatedly been denied,” helium said, adding that the State’s long-pending demands for a fairer devolution look had been ignored.
He alleged that portion the Centre claims to person marginally improved taxation devolution, Karnataka had been severely disadvantaged successful allocations nether the State and National Disaster Response Funds, with acold little grants compared to States specified arsenic Maharashtra, Uttar Pradesh, and Madhya Pradesh. Mr. Siddaramaiah criticised the simplification successful allocations to States nether Centrally Sponsored Schemes, noting that the promised ₹5.41 lakh crore successful the 2025-2026 Budget had been chopped to ₹4.2 lakh crore successful the revised estimates, a shortfall of ₹1.21 lakh crore. “This straight affects States similar Karnataka, which beryllium connected these transfers for improvement programmes,” helium said.
Mr. Siddaramaiah pointed retired that Karnataka is owed a pending stock of ₹13,004 crore nether the Jal Jeevan Mission.
“Overall, this Budget holds nary value from Karnataka’s perspective. Big promises person been made, but without matching funds. It is simply a Budget without vision, without fairness and without justness to States that lend substantially to the nationalist economy,” helium said.
Taking objection connected connection connected uncommon world materials, the Chief Minister said: “It was unfortunate that Karnataka has been wholly ignored successful the projected uncommon world corridors contempt having known deposits of uncommon world minerals regions specified arsenic Chamarajanagar and others parts of the State.
Highspeed corridor
Chief Minister Siddaramaiah said that the genuine request of the State was Bengaluru-Mumbai oregon Bengaluru-Pune oregon Bengaluru-Mangaluru highspeed corridor that would person integrated technology, finance, manufacturing, and planetary commercialized to payment Karnataka. “The projected Bengaluru-Hyderabad and Bengaluru-Chennai high-speed corridor volition mostly payment Telangana, Andhra Pradesh and Tamil Nadu by giving them faster entree to Bengaluru’s economical ecosystem,” helium said.
