A special grant for Bengaluru has been requested, citing that it is a global city, and ₹1.15 lakh crore is required for its infrastructure projects.
Published Jun 25, 2025 | 11:33 AM ⚊ Updated Jun 25, 2025 | 11:33 AM
Karnataka CM Siddaramaiah. (X)
Synopsis: On 24 June, Karnataka CM Siddaramaiah met President Murmu and Finance Minister Sitharaman, seeking approval for seven pending bills and highlighting a ₹80,000 crore shortfall in central funds. He demanded fairer tax devolution, revenue deficit grants, and special aid for Bengaluru and disaster-hit regions, stressing Karnataka’s strong GDP contribution and calling for changes in the fund-sharing formula.
Karnataka Chief Minister Siddaramaiah on Tuesday, 24 June, met with President Droupadi Murmu to discuss seven bills that have not yet received presidential assent. He stated that the bills have been sent to the concerned departments and urged the President to ensure they are returned and approved.
The chief minister had also met Union Finance Minister Nirmala Sitharaman and, a week ago, had met the Chairman and members of the 16th Finance Commission.
During these meetings, he submitted the second additional memorandum, pointing out that under the 14th Finance Commission, Karnataka received a 4.7 percent share in tax devolution, which dropped to 3.6 percent under the 15th Commission—a reduction of 1.1 percent.
This has led to an overall 23 percent cut in fund allocation, amounting to a loss of ₹80,000 crore over five years.
“Karnataka has faced a loss of ₹63,000 crore in tax devolution. Additionally, a special grant of ₹5,495 crore was reserved for the state, including ₹3,000 crore for the Peripheral Ring Road and ₹3,000 crore for the development of Bengaluru’s lakes, totaling ₹11,495 crore. Overall, the state has been deprived of ₹80,000 crore—a significantly large amount,” Siddaramaiah said.
Urging the centre to recognise the states that contribute more to the country’s economic development, he added, “Though Karnataka accounts for only 5 percent of the country’s population, it contributes 8.7 percent to the national GDP. In 2011–12, the contribution was 7.6 percent, which has now increased to 8.7 percent. Karnataka ranks second in the country for GST contributions and third in GDP.”
Siddaramaiah also noted that the Union government should reduce the weightage of per capita income from 45 percent to 20 percent in the devolution formula, “Like Kerala, Andhra Pradesh, and Tamil Nadu, Karnataka should also receive revenue deficit grants—otherwise, no state should receive them.”
He explained that Karnataka had more revenue than expenditure (revenue surplus) but has faced a deficit since last year. While Karnataka is expected to recover next year, the Centre has continued to give deficit grants to states that have always shown fiscal inefficiency. This, he said, is not a fair approach.
A special grant for Bengaluru has been requested, citing that it is a global city, and ₹1.15 lakh crore is required for its infrastructure projects. He also sought special grants to tackle disasters caused by floods in the Malnad and Western Ghats regions and for the development of the Kalyana Karnataka region.
When asked by the media whether the Union Finance Minister had responded to the state’s demands, Siddaramaiah said that no accusations were made but only requests. He added that the finance minister assured that the state’s concerns would be reviewed and appropriate action taken if injustice had been done.
