Karnataka CM's Push for Greater Tax Share
Karnataka Chief Minister Siddaramaiah met with 16th Finance Commission Chairman to advocate for a larger central tax allocation to the state. The plea includes demands for cess and surcharge inclusion in the divisible pool if they exceed five percent. This comes as Karnataka faces a reduced tax share compared to previous commissions.
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In a decisive move to secure more financial resources for Karnataka, Chief Minister Siddaramaiah met with the 16th Finance Commission Chairman, Arvind Panagariya, on Friday. His primary demand was for a larger allocation of funds from the central tax pool for the upcoming five-year period starting on April 1, 2026.
The chief minister, who described the meeting as amicable, submitted an additional memorandum advocating for higher state allocations. Siddaramaiah argued that if the central government's collection of cess and surcharge exceeds five percent, it should be included in the divisible pool shared with states.
Highlighting a significant reduction in Karnataka's share of the central tax revenues under the 15th Finance Commission, Siddaramaiah pushed for equitable treatment among states, especially as the 16th Finance Commission gears up to provide its recommendations by October 31, 2025.
(With inputs from agencies.)
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