Published Feb 05, 2026 | 4:04 PM ⚊ Updated Feb 05, 2026 | 4:04 PM
Karnataka IT&BT Minister Priyank Kharge (R) with renowned economist Rathin Roy at the Dakshin Dialogues 2026.
Synopsis: Karnataka IT&BT Minister Priyank Kharge sharply criticised the Centre at Dakshin Dialogues 2026 for unfair tax devolution, revealing Karnataka receives just ₹13 back for every ₹100 contributed, compared to ₹282–₹333 for northern states like UP and Bihar. He highlighted shortfalls in Jal Jeevan Mission and ₹2,500 crore withheld for rural development. Kharge demanded fair treatment without punishing southern states’ success in governance and economy.
Karnataka Rural Development and IT Minister Priyank Kharge on Wednesday, 28 January, accused the Centre of perpetuating fiscal imbalances that penalise southern states for their economic success. He delivered his sharp critique during the Dakshin Dialogues 2026 event organised by South First.
Speaking in a fireside discussion, Kharge highlighted Karnataka’s leading contributions to national growth. The state tops rankings in IT exports, GST collections, and FDI inflows while absorbing the highest internal migration and still generating employment opportunities.
Kharge said, “For every ₹100 Karnataka contributes to the Centre, it receives only ₹13 back.”
In contrast, northern states receive significantly higher shares – UP gets ₹282, MP ₹288, and Bihar ₹333 per ₹100 contributed. Kharge demanded at least ₹30 return per ₹100 to adequately fund infrastructure and job creation, clarifying that southern states are not opposed to higher allocations for poor states.
“We are not asking for ₹90 back,” he said, emphasising that funds to northern states should be utilised productively for hospitals, schools, and infrastructure rather than religious extravagance.
Under the Jal Jeevan Mission – a 50:50 Centre-state programme – Karnataka was allocated ₹5,000 crore in 2025 but received only ₹571 crore. The state covered the remaining ₹15,000 crore itself to prevent project delays, leaving a pending central liability of ₹15,000 crore.
Besides, ₹2,500 crore owed under the 15th Finance Commission recommendations for rural development and panchayats remains unreleased, despite being constitutionally mandated.
He said that southern states should not be “punished” for prioritising education, skill development, industries, and services since Independence.
“All states had the same opportunities,” Kharge added, stressing that southern performance stems from consistent policy focus and compliance.
Kharge lamented that repeated queries to the Centre on these disparities have gone unanswered, reinforcing perceptions of systemic bias against high-performing states.
