Karnataka CM Siddaramaiah Confronts Centre Over State's Financial Share and Infrastructure Challenges

Karnataka Chief Minister Siddaramaiah.

On Tuesday, Karnataka Chief Minister Siddaramaiah launched a scathing critique against the BJP-led central government, claiming that Karnataka receives "not a rupee" from the Centre. He also questioned the recent GST reforms introduced before Diwali.

Siddaramaiah expressed frustration over state BJP leaders' silence regarding what he described as "injustice" toward Karnataka, challenging them on why they haven't addressed these concerns with the central government.

These remarks come amid growing criticism of Karnataka's infrastructure, particularly Bengaluru's deteriorating road conditions and traffic congestion. Notable industry figures, including former Infosys CFO Mohandas Pai and Biocon founder Kiran Shaw, have publicly called for immediate intervention.

"We don't receive a single rupee from the Centre. After Mumbai and Delhi, we contribute one of the highest tax amounts in the country. Bengaluru residents should understand that for every rupee Karnataka contributes in taxes, we only get back 14-15 paise. Is this sufficient?" Siddaramaiah emphasized.

The Congress leader further alleged that requests for additional funding are consistently politicized. Regarding GST reforms, he stated, "For eight years they collected high taxes under GST, and now they display Prime Minister Narendra Modi's photos claiming it's a Diwali gift. Is this fair? Should we not hold them accountable? Can this truly be considered a gift?"

In early October, the GST Council approved a comprehensive restructuring of India's consumption tax system, reducing duties on household essentials, medications, small vehicles, and appliances. The council streamlined tax slabs to 5% and 18%, as the central government aims to stimulate domestic spending and mitigate the economic impact of U.S. tariffs on Indian products.

Siddaramaiah criticized specific BJP representatives, stating, "People vote for the BJP, but their leaders never question the unfair treatment toward Karnataka or request the additional funds our state deserves. There's that South MP, Tejasvi Surya, whom I call 'amavasya'. Even MP Shobha Karandlaje... they've remained silent on this matter."

The BJP had not responded at the time of reporting, although earlier that day, party leader R Ashoka predicted the state's Congress government would collapse by year-end.

Last week, Kiran Shaw reignited debate about Bengaluru's infrastructure by sharing critical observations from a visiting international executive regarding the city's roads and waste management. Her comments prompted Deputy Chief Minister DK Shivakumar, who oversees Bengaluru's development, to respond that the city needs collaborative effort rather than persistent criticism.

In March, Siddaramaiah criticized the Centre for failing to release promised grants for various state projects, including the Bhadra dam initiative, pension schemes for vulnerable populations, and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Earlier this month, he declared his readiness to pursue legal action if necessary to secure Karnataka's rightful allocation of central funds.