On 11 January, Tamil Nadu Finance Minister Thangam Thenarasu had also questioned the high allocation to Uttar Pradesh, Bihar and Madhya Pradesh.
Published Jan 14, 2025 | 2:43 PM ⚊ Updated Jan 14, 2025 | 2:43 PM
File photo of Karnataka Chief Minister Siddaramaiah. (Siddaramaiah.Official/Facebook)
Karnataka Chief Minister Siddaramaiah slammed the BJP-led Union government over the low allocation to the state in the tax devolution — share in the divisible pool of Central Taxes and duties — paid to the states for January 2025.
In an X post on Monday, 13 January, He also questioned the saffron party leaders from Karnataka for not speaking against the “injustice” done to the state. Siddaramaiah pointed out that despite being a major contributor to the nation’s GDP, Karnataka was given back only 13 paise for every rupee it contributed to the national exchequer.
On 11 January, Tamil Nadu Finance Minister Thangam Thenarasu had also questioned the high allocation to Uttar Pradesh, Bihar and Madhya Pradesh.
In the tax devolution, Uttar Pradesh alone received ₹31,039.84 crore while all five Southern states combined got only about ₹27,336 crore.
Siddaramiah slammed Karnataka BJP leaders for praising Prime Minister Narendra Modi instead of questioning the low allocation to Karnataka.
“I deliberately waited a couple of days, hoping @BJP4Karnataka’s leaders would muster the courage to speak up for Kannadigas. But what have they done? Instead of fighting for our rightful share, they are busy singing praises of Modi for this grand betrayal of Karnataka! Is this their idea of leadership—bowing to Delhi while Karnataka is robbed of its dues?” he questioned.
“The NDA government’s betrayal of Karnataka continues in full swing. Of the ₹1,73,030 crore allocated to states, Karnataka has been given a mere ₹6,310 crore—a shocking drop from previous installments. This injustice mocks every hardworking Kannadiga,” he added.
He questioned why Karnataka, contributing ₹4.5 lakh crore annually to the national exchequer, received only ₹45,000 crore in tax share and ₹15,000 crore in grants —a mere 13 paise for every rupee the state contributed.
“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 ₹24.42 lakh crore in 2018-19 to ₹48.20 lakh crore in 2024-25, yet Karnataka’s share has stagnated. In 2018-19, Karnataka received ₹46,288 crore, but in 2024-25, it has been allocated only ₹44,485 crore, with an additional ₹15,299 crore in grants. Karnataka, contributing so much, should receive at least ₹1 lakh crore annually but continues to be denied its rightful share,” he said.
“Meanwhile, corruption-ridden states like Uttar Pradesh (₹31,039 crore), Bihar (₹17,403 crore), Madhya Pradesh (₹13,582 crore), and Rajasthan (₹10,426 crore) are showered with funds. Is Karnataka being punished for excelling in governance, GST growth, and development?” Siddaramaiah questioned.
He also pointed out that the 15th Finance Commission reduced Karnataka’s tax share from 4.713 percent to 3.647 percent, costing the state ₹79,770 crore over five years.
“Even the recommended special grant of ₹5,495 crore to compensate for these losses was denied by the Modi government. And where are Karnataka’s BJP leaders? Silent as always. Why are they not demanding our rightful share? Are they representatives of Kannadigas or mere puppets of Delhi? Their silence is a betrayal of Karnataka’s people and their aspirations,” he said.
“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,” he added.
The chief minister said that Karnataka would not tolerate the bias any longer and called upon all Kannadigas to fight for, “What is rightfully ours!”
I deliberately waited a couple of days, hoping @BJP4Karnataka‘s leaders would muster the courage to speak up for Kannadigas. But what have they done? Instead of fighting for our rightful share, they are busy singing praises of Modi for this grand betrayal of Karnataka! Is this…
— Siddaramaiah (@siddaramaiah) January 13, 2025
In a post on X, Thenarasu questioned the Union government’s action asking whether it was cooperative federalism or centralised discrimination.
“Five Southern states that drive India’s economy get just 15% allocation, while Bihar, UP, and MP together corner nearly 40%. Is this cooperative federalism or centralised discrimination?” he asked.
Five Southern states that drive India’s economy get just 15% allocation, while Bihar, UP, and MP together corner nearly 40%. Is this cooperative federalism or centralised discrimination? pic.twitter.com/KBDMq2pJFN
— Thangam Thenarasu (@TThenarasu) January 11, 2025
In the tax devolution for January 2025, Uttar Pradesh received the highest allocation of ₹31,039.84 crore, followed by Bihar with ₹17,403.36 crore and West Bengal with ₹13,017.06 crore. Madhya Pradesh was allotted 13582.86 crore.
Among the South Indian states, Andhra Pradesh was allotted ₹7,002.52 crore, Karnataka ₹6,310.40 crore, Kerala ₹3,330.83 crore, Tamil Nadu ₹7,057.89 crore, and Telangana ₹3,637.09 crore.
The release of funds is identical to when the Union government released the tax devolution in October 2024, when leaders from the Southern states raised similar concerns.
(Edited by Muhammed Fazil.)
