Karnataka CM Advocates for Equitable Tax Devolution from Center

Karnataka CM Siddaramaiah advocated for a fair distribution of tax revenues, amid stark fiscal imbalances. Meeting with 16th Finance Commission's Arvind Panagariya, he sought a larger tax pool allocation, an investment in Bengaluru's infrastructure, and reforms to promote balanced growth, equity, and predictable fiscal systems.

Karnataka Chief Minister Siddaramaiah met with the 16th Finance Commission's chairman, Arvind Panagariya, to push for a more equitable distribution of central tax revenues. During the meeting, Siddaramaiah highlighted the fiscal imbalances faced by Karnataka despite its significant contribution to the national GDP.

He emphasized the need for reform in fiscal devolution, particularly in light of the state's dwindling share of revenue returns. Siddaramaiah argued for an increase in the proportion of taxes devolved to states, recommending a cap on cess and surcharges and proposing that high-performing states should receive fairer compensation for their contributions.

Highlighting the importance of growth-oriented reforms, Siddaramaiah insisted that Karnataka's fiscal strength should be rewarded rather than penalized. The chief minister called for a balanced, forward-looking approach to tax devolution, ensuring states like Karnataka receive their fair share of national resources.

(With inputs from agencies.)