Karnataka Chief Minister Siddaramaiah has launched a strong attack on the Central government, alleging serious injustice in tax devolution to the state. He claimed that for every ₹1 paid in taxes by the people of Karnataka, the Centre returns only 15 paise, questioning whether this should be termed “tax terrorism” or “tax loot.”

The Chief Minister stated that during the last financial year, the Centre collected over ₹4.5 lakh crore from Karnataka through taxes, cesses, and surcharges, while only about ₹89,000 crore was returned to the state. He added that this issue has been repeatedly raised with the Centre over the past three years, including protests in Delhi, but no satisfactory response has been received.

Targeting BJP leaders Basavaraj Bommai and R. Ashoka, Siddaramaiah said they remain silent when the state’s interests are at stake but are now making baseless criticisms.

He further highlighted that Karnataka ranks second in the country in GST collections and first in growth rate at 17%, yet is not receiving its fair share. He alleged that the “unscientific implementation” of GST has caused losses worth thousands of crores to the state.

Siddaramaiah also accused the Centre of denying Karnataka its rightful share under the Fifteenth Finance Commission and pointed out that funds collected through cesses and surcharges are not being shared with states. Due to inadequate funding for centrally sponsored schemes, the state is being forced to borrow, he added.

Issuing a challenge, the Chief Minister said that if the Centre ensures fair tax devolution, GST compensation, and adequate funding for central schemes, Karnataka could run its economy without borrowing a single rupee.

Criticising the Central government led by Prime Minister Narendra Modi, he said India’s total debt has risen from ₹51.06 lakh crore in 2014 to ₹214 lakh crore in the 2026–27 budget, placing an approximate burden of ₹4.8 lakh per citizen.

He emphasized that Karnataka plays a crucial role in the national economy and is among the top tax-contributing states after Maharashtra, yet it is not receiving its due share. Siddaramaiah asserted that his government will continue its fight to protect the interests of the people of Karnataka and take all necessary steps to secure justice from the Centre.

Source: Haqeeqat Times