The row over devolution of Goods and Services Tax funds continues in 2025, with Karnataka criticising the recent allocation made to the state as a mockery of “every hard-working Kannadiga”.
A statement issued by Chief Minister Siddaramaiah said the “NDA government’s betrayal of Karnataka continues in full swing. Of the Rs 1,73,030 crore allocated to states, Karnataka has been given a mere Rs 6,310 crore—a shocking drop from previous instalments”.
Siddaramaiah said that Karnataka contributed 8.4 per cent to the nation’s gross domestic product (GDP) despite making up only five per cent of the country’s population. “We rank second in GST collection and lead the nation in GST growth with an impressive 17 per cent increase. However, despite Karnataka’s significant contributions, the Union Budget has doubled from Rs 24.42 lakh crore in 2018-19 to Rs 48.20 lakh crore in 2024-25, yet Karnataka’s share has stagnated,” the chief minister said in the statement.
While the share of Karnataka’s taxes in 2018-19 was Rs 46,288 crore, in 2024-25 the state was allocated only Rs 44,485 crore with an additional Rs 15,299 crore in grants. “Why should Karnataka, contributing Rs 4.5 lakh crore annually to the national exchequer, receive only Rs 45,000 crore in tax share and Rs 15,000 crore in grants—a mere 13 paise for every rupee we contribute? Meanwhile, corruption-ridden states like Uttar Pradesh (Rs 31,039 crore), Bihar (Rs 17,403 crore), Madhya Pradesh (Rs 13,582 crore), and Rajasthan (Rs 10,426 crore) are showered with funds. Is Karnataka being punished for excelling in governance, GST growth, and development?” Siddaramaiah further said.
The grants were released to the states on January 10.
Siddaramaiah also hit out at BJP leaders for being silent despite the reduction in the state’s share, adding that the Opposition’s silence was a “betrayal of Karnataka’s people and their aspirations”.
“As the nation celebrates Sankranti, Karnataka, despite its unparalleled contributions, is left to fend for itself,” he said, adding that tax money from the state went to the coffers of BJP leaders in Uttar Pradesh, Bihar, and Madhya Pradesh, while people from Karnataka were made to suffer during floods, droughts, and other crises.
Source from: https://indianexpress.com/article/cities/bangalore/karnataka-cm-siddaramaiah-centre-reduced-gst-share-9776940/
