Karnataka gets just 15 paise per ₹1 paid in taxes, CM hits out at BJP, Centre

Karnataka Chief Minister Siddaramaiah on Wednesday launched a scathing attack on the Centre , accusing it of “tax terrorism or tax plunder” and alleging that the state receives only a fraction of the revenues it contributes.

Speaking at a public event, Siddaramaiah claimed that for every ₹1 paid in taxes by Kannadigas , the Union Government returns just 15 paise . Citing official figures, he said the Centre collected over ₹4.50 lakh crore from Karnataka in the last financial year through taxes, cess, and surcharges , while the state received only ₹79,000 crore in return.

The CM criticised BJP leaders from Karnataka, including former CM Basavaraj Bommai and assembly leader R Ashoka , for remaining silent during protests in Delhi over the issue and now speaking against the state government. “When we raised this injustice repeatedly, they chose silence. Today, they speak against us instead of standing up for seven crore Kannadigas ,” he said.

Highlighting Karnataka’s performance in the GST regime , Siddaramaiah pointed out that the state ranks second in total GST collections and first in growth rate , with a 17% increase. Yet, he said, the state receives only 52% of its rightful share , blaming a “flawed and unscientific implementation” of GST for financial losses worth thousands of crores .

The CM further alleged that the Centre’s denial of fair allocations under the 15th Finance Commission , non-sharing of cess and surcharge revenues, and underfunding of centrally sponsored schemes have weakened Karnataka’s finances, forcing the state to borrow. He argued that with proper revenue devolution and compensation, Karnataka could manage finances without borrowing a single rupee .

Siddaramaiah also criticised the BJP for exaggerating state borrowing while ignoring the national debt surge , which rose from ₹51.06 lakh crore in 2014 to ₹214 lakh crore in 2026-27 , amounting to an average burden of ₹1.5 lakh per citizen , including Kannadigas.

In response to BJP State President B Y Vijayendra’s demand for a white paper on state finances, Siddaramaiah dismissed it as a reflection of “poor economic understanding and political jealousy.” Vijayendra countered, stating that Karnataka has been pushed into a debt trap and called a long-term budget no substitute for financial transparency.