Karnataka Chief Minister plans conclave in Bengaluru to discuss unfair devolution of Central taxes

Karnataka CM seeks fair tax devolution, invites CMs for conclave on fiscal federalism, challenges unfair allocations by Union government.

Karnataka Chief Minister Siddaramaiah on Wednesday said he had written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab regarding the unfair devolution of taxes by the Union government.

In his post on X, Mr. Siddaramaiah said, “I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift and create incentives for growth & better tax mobilization”.

The Chief Minister said, “States with higher GSDP per capita, like Karnataka and others, are being penalised for their economic performance, receiving disproportionately lower tax allocations. This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive States”.

With many non-BJP-ruled States levelling charges over anomalies in the devolution of Central funds, the Kerala government is hosting a fiscal conclave in Thiruvananthapuram on September 12 to discuss the approach towards the 16th Finance Commission.