Karnataka Battles Federal Funding Cuts Amidst Political Tensions

Karnataka Chief Minister Siddaramaiah accuses the Union Government of reducing the state's tax share, labeling it as unconstitutional and a federal attack. Citing financial grievances, he warns of protests if negotiations fail, arguing that the state's revenue rights have been consistently undermined.

Karnataka's Chief Minister Siddaramaiah has accused the Union Government of a 'direct attack on the federal structure' by seeking to reduce the state's share of central taxes from 41% to 40%. This move, he claims, undermines the constitutional rights of states, pushing them into dependency.

Highlighting financial grievances, Siddaramaiah noted that Karnataka has contributed substantially to the national exchequer with minimal returns. The state has reportedly lost significant revenue due to the reduction in its tax share, and the non-release of special and centrally sponsored grants.

The Chief Minister warns that if appeals and negotiations fail, his government will mobilize street protests. He also called for reforms, including adding cess and surcharges to the divisible tax pool and amending the Constitution to address economic growth needs.

(With inputs from agencies.)