Karnataka CM meets Sitharaman, seeks pro-growth tax devolution from 16th Finance Commission
New Delhi, Jun 24 (PTI): Karnataka Chief Minister Siddaramaiah on Tuesday met Union Finance Minister Nirmala Sitharaman to seek the Centre's support for a pro-growth approach in tax devolution among states by the 16th Finance Commission.
During the meeting, Siddaramaiah briefed Sitharaman on Karnataka's significant losses under the 15th Finance Commission award and demanded a larger allocation for the state from the central tax pool under the 16th Finance Commission starting April 1, 2026.
"I met the Union Finance Minister and informed that Karnataka faced a cumulative loss of over Rs 80,000 crore due reduction in the state's share of tax devolution by the 15th Finance Commission," Siddaramaiah told reporters after the meeting.
The CM submitted an additional memorandum and urged the Centre to rectify a persistent imbalance in fiscal transfers from the Centre to states.
Under the 15th Finance Commission, the state's share in tax devolution declined from 4.713 per cent to 3.647 per cent -- a reduction of over 23 per cent. Karnataka was also denied Rs 11,495 crore in special grants, resulting in a total loss of Rs 80,000 crore during the award period.
The chief minister attributed this decline primarily to the over-reliance on the income-distance criterion, which received 45 per cent weightage under the 15th Finance Commission.
Karnataka has requested the 16th Finance Commission to reduce the weightage for income-distance by 20 percentage points and reallocate it to fiscal contribution -- the state's share in national GDP.
The state has also proposed discontinuing Revenue Deficit Grants in their current format, arguing they contradict fiscal discipline principles outlined in the FRBM framework. Instead, Karnataka suggested redistributing the same amount -- 1.92 per cent of Gross Union Receipts under the 15th Finance Commission -- among all states using the horizontal devolution formula.
Siddaramaiah highlighted the developmental challenges facing Bengaluru, Kalyana Karnataka and Malenadu regions, emphasising that fair and pro-growth devolution would accelerate the state's growth trajectory.
The chief minister clarified that Karnataka's proposals were not a request for special treatment but would improve overall national resource mobilisation and foster cooperative and competitive federalism.
The meeting concluded with Siddaramaiah requesting the finance minister to include these proposals in the Union government's memorandum to the 16th Finance Commission, arguing that growth-friendly devolution would empower all states to contribute effectively to India's development journey.
The Finance Commission gives suggestions on financial relationship between the Centre and states.
The 16th Finance Commission, set up in December 2023 under the chairmanship of Arvind Panagariya, is expected to give its recommendations by October 31, 2025, which will be applicable for a five-year period beginning April 1, 2026.
The 15th Finance Commission headed by N K Singh had suggested that states be given 41 per cent of the divisible tax pool of the Centre for a five-year period from April 2021 to March 2026.
Met Union Finance Minister Smt. @nsitharaman today and urged the Govt of India to ensure a pro-growth and fair tax devolution by the 16th Finance Commission.
— Siddaramaiah (@siddaramaiah) June 24, 2025
Karnataka’s share was slashed from 4.713% to 3.647% under the 15th FC - resulting in a loss of ₹80,000 crore.
I’ve… pic.twitter.com/wV5MF0K6Ej
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
AIITA welcomes Karnataka’s ban on obscene songs in school events
Bhatkal: The Karnataka unit of the All India Ideal Teachers Association (AIITA) has welcomed the Karnataka government’s decision to strictly ban school children from dancing to obscene songs during educational and cultural programmes in government, aided, and private schools across the state.
AIITA Karnataka State President M. R. Manvi congratulated the government for taking what he termed an important step to preserve the sanctity of education.
“Such decisions to safeguard the dignity of school children and uphold the values of education are the need of the hour. This rule should not be limited to government schools alone but must be strictly implemented in all private educational institutions as well,” he said.
He further urged the government to address other concerns within school programmes.
“The government should not only prohibit obscene dances in the name of school anniversaries, but also ensure that plays and dialogues that incite religious hatred are avoided. Schools should be centres of harmony, not platforms for spreading hatred,” he added.
According to a recent circular issued by the Department of School Education and Literacy, obscene dances are adversely affecting the mental health and moral values of students.
In this regard, schools have been advised to use songs that promote nationalism, positive thinking, the greatness of Kannada culture, and value-based traditions instead of inappropriate content during programmes.
The circular also emphasises that students should be dressed in decent attire.
AIITA also backed the department’s warning that disciplinary action would be taken against head teachers if such guidelines are violated. The association has further demanded that district Deputy Directors of Public Instruction strictly monitor the implementation of these rules.
