Siddaramaiah has appealed to the 16th Finance Commission to restore what he described as Karnataka’s due portion of central tax revenues, arguing that equitable tax distribution is a matter of right rather than generosity. He stressed that the state’s requests are rooted in constitutional principles and framed around fairness in fiscal federalism.
He said the state has formally presented well-founded demands to the commission, seeking a just approach to tax devolution. He added that he expects the commission to consider these issues impartially and that the Union government should carry out the recommendations sincerely and without bias, claiming the state had previously faced unfair treatment.
Pointing to the state’s strong role in contributing to national revenues, the Chief Minister noted that Karnataka remains one of the leading contributors to the national exchequer. Despite this, he said its share in the divisible tax pool fell from 4.71% to 3.64% in the last award cycle, which the state estimates resulted in a revenue shortfall of about ₹80,000 crore. State officials maintain that existing formulas unintentionally disadvantage states that perform better in development indicators and population control.
He also listed several issues raised before the commission, including what the state considers impractical GSDP projections, limited disaster-relief allocations, and the growing use of cesses and surcharges that are excluded from the divisible pool. The state has additionally flagged the end of GST compensation and delays in releasing some grants, saying these have collectively strained finances.
Under a public awareness drive titled “Justice for Karnataka | Fair Share, Strong Federalism,” the government has circulated informational posters outlining its submissions. These demands include reinstating the earlier tax share, reassessing criteria such as income, population, and GSDP, improving disaster and ecological funding, and deepening fiscal decentralisation.
The campaign also calls for focused infrastructure backing for Bengaluru, special support for underdeveloped regions like Kalyana Karnataka, and strict observance of cooperative federalism principles. Siddaramaiah said the effort is meant to inform the public and document the state’s position, emphasising that Karnataka is asking for fairness and respect within the federal structure, not preferential treatment.
