Yogesh K Porwar & Sunil Lohan
T
he persistent injustice in tax distribution by the NDA government towards Karnataka is undeniable,with the latest tax share figures serving as clear evidence.
Out of a total of Rs.1,78,193 crore allocated to 28 states, Karnataka has been given a meager Rs.6,498 crore.This gross injustice calls for every Kannadiga,irrespective of caste,religion,or political affiliation,to pledge to raise their voice against such discrimination.
Let this Vijayadashami,a symbol of victory over injustice, mark the beginning of our collective fight for fairness.
What wrong has Karnataka done to deserve such neglect?.
The question every proud Kannadiga must ask the central government is why Karnataka’s hard-earned contributions are being used to reward misgoverned and corruption-ridden states.
Uttar Pradesh,infamous for its poor governance,has been allocated Rs.31,962 crore;Bihar,Rs.17,921 crore; Madhya Pradesh,Rs.13,987 crore;and Rajasthan,Rs.10,737 crore.
Why should the sweat and toil of Karnataka fuel the growth of states that have lagged behind due to maladministration?.
Despite contributing significantly to the nation’s tax revenues,Karnataka receives only 3.64% of the total tax share—far below the 17.93% for Uttar Pradesh,10.05% for Bihar, 6.02% for Rajasthan,and 7.85% for Madhya Pradesh. The central government’s discriminatory policies are evident in these figures.
While Karnataka excels in governance and development, the financial rewards are directed towards poorly governed states.
The 14th Finance Commission set Karnataka’s tax share at 4.713%, but the 15th Finance Commission unjustly reduced it to 3.647%,costing the state approximately ₹62,275 crore between 2021-2026.
Even when the Finance Commission recommended a special grant of Rs.5,495 crore to compensate for the loss, the central government refused to release the funds, further aggravating the injustice.
In total, Karnataka lost a staggering Rs.79,770 crore due to unfair tax distribution during this period.
Although Karnataka makes up only 5% of India’s population, it contributes 8.4% to the nation’s GDP. The state ranks second in GST collection and leads the nation in GST growth with a 17% increase.
However,Karnataka receives only 52% of the GST it collects,losing Rs.59,274 crore since the introduction of GST.
Even though Karnataka contributes Rs.4.5 lakh crore to the national exchequer annually, the state only receives Rs.45,000 crore in tax share and Rs.15,000 crore in grants—a mere 15 paise for every rupee contributed. How long must we tolerate this gross injustice?.
Despite the Union Budget doubling over the past eight years—from ₹24.42 lakh crore in 2018-19 to Rs.48.20 lakh crore in 2024-25—Karnataka’s share has stagnated.
In 2018-19, the state received Rs.46,288 crore,while in 2024-25,it has allocated only Rs.44,485 crore,with an additional Rs.15,299 crore in grants.
Karnataka should receive a minimum of Rs.1 lakh crore annually,but it has been denied its rightful share.
The 15th Finance Commission recommended Rs.5,495 crore in special grants and additional funds of Rs.6,000 crore for Bangalore’s Peripheral Ring Road and water resource projects.
However,Finance Minister,Nirmala Sitharaman rejected these recommendations,resulting in Karnataka losing Rs.11,495 crore.
India’s federal structure relies on cooperation between the Union and state governments.However,the central government’s biased approach towards Karnataka and other southern states threatens this balance.
The dream of a $5 trillion economy can only be realized with the unwavering contribution of states like Karnataka,yet the central government continues to treat them unfairly.
Since Narendra Modi’s government came to power, Karnataka has suffered.The abolition of the Planning Commission and its replacement with the NITI Aayog marginalized state governments.
Additionally,changes to the objectives of the 15th Finance Commission have disproportionately hurt southern states.
Karnataka’s tax contributions are being siphoned off to states that have failed to manage their resources, leaving Karnataka struggling during crises like floods and droughts without adequate support from the Centre.
What use is taxation if Karnataka’s resources don’t serve the people of the state? If the hard-earned money of Kannadigas is not used to wipe their tears in times of crisis, what is the purpose of this federal structure? These are the questions we must confront.
We must initiate a public debate on how Karnataka, while respecting the federal structure, can secure its rightful share.Let this discussion begin today,on the auspicious occasion of Vijayadashami,and lead us to justice and fairness.
