CM seeks 'fair share' of central tax revenue

Chief minister Siddaramaiah on Tuesday met Union finance minister Nirmala Sitharaman in New Delhi and sought a fairer share of central tax revenues for the state under the 16th Finance Commission, arguing that the current formula disproportionately penalises states like Karnataka that contribute significantly to the national economy.

- Arun Dev

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BENGALURU:

During the meeting, the chief minister highlighted that Karnataka's share in tax devolution saw a sharp decline under the 15th Finance Commission, falling from 4.713% to 3.647% — a reduction of over 23%. This, he said, translated into an estimated cumulative loss of ₹80,000 crore over the award period, including the denial of special grants worth ₹11,495 crore.

"We have brought to the finance minister's attention that Karnataka has been unfairly impacted by the existing devolution formula, especially due to the over-reliance on the income-distance criterion, which carried a 45% weightage under the 15th Finance Commission," Siddaramaiah said after the meeting.