Karnataka Received ₹4 Lakh Crore in Tax Devolution Since 2014, Says Union Finance Minister Nirmala Sitharaman
Bengaluru, June 14: Union Finance Minister Nirmala Sitharaman on Friday rejected the narrative that Karnataka has been denied its fair share of central funds, asserting that official figures present a very different picture.
Addressing an event in Bengaluru, Sitharaman said the allocation of tax revenues to states is governed by the recommendations of the Finance Commission and follows a well-defined constitutional framework.
The Finance Minister stated that Karnataka has received substantial financial support from the Centre over the last decade and that claims suggesting the state has been neglected are not supported by official data.
According to Sitharaman, Karnataka received approximately ₹4 lakh crore as tax devolution between 2014 and 2026, which is nearly five times the ₹82,000 crore received during the period between 2004 and 2014.
She further pointed out that Karnataka also received significant support through grants-in-aid from the Union Government. Between 2014 and 2026, the state received approximately ₹2.71 lakh crore in grants-in-aid, compared to around ₹60,000 crore during the 2004-2014 period.
Sitharaman said these figures demonstrate the extent of financial transfers made to Karnataka under the existing Finance Commission framework and counter allegations that the state has been deprived of its due share.
The remarks come amid continuing political debates over fiscal federalism and the distribution of central resources among states. Karnataka has frequently figured in discussions regarding tax contributions, devolution formulas and central financial assistance.
The Union Finance Minister maintained that tax devolution and grants are allocated according to established constitutional mechanisms and Finance Commission recommendations, and not through discretionary decisions of the Union Government.
Her comments are expected to add fresh momentum to the ongoing political debate between the Centre and the Karnataka Government over revenue sharing and financial allocations.
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