Five NDA-Ruled States Among Eight Invited By Karnataka CM Siddaramaiah To Bengaluru Conclave On Unfair Tax Devolution By Centre

Karnataka Chief Minister Siddaramaiah has sent letters to his counterparts in eight states, including those ruled by NDA, raising concerns over the devolution of taxes by the Central Government.

Siddaramaiah also said that he has invited the CMs of these states 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 and better tax.

In the letter shared on the social media platform 'X,' Siddaramaiah revealed that he had reached out to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab.

Maharashtra and Andhra Pradesh are ruled by BJP-led NDA, while Gujarat and Haryana are BJP-ruled states.

"States with higher GSDP per capita, like Karnataka and others, are being penalized 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," Siddaramaiah said.

Siddaramaiah pointed out that the 16th Finance Commission has begun its deliberations.

“The previous finance commissions have laid excessive emphasis on equity at the cost of efficiency and performance. As a result, states with higher GSDP per capita and higher contribution to the gross tax revenues of the union are progressively receiving lower shares of the central fiscal transfers,” he added.

This comes as Karnataka’s Revenue Minister, Krishna Byre Gowda, is set to represent the state at the non-NDA finance ministers' meeting in Thiruvananthapuram today (12 September), where he will convey the above message to the concerned.

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