Siddaramaiah Threatens Court Action Over Karnataka’s Unpaid Central Funds

Karnataka Chief Minister Siddaramaiah threw down a challenge on Friday, promising to take the Central Government to court if it fails to release the state's fair share of funds. Speaking to reporters, he also blasted the Centre's celebration of recent Goods and Services Tax (GST) changes, saying there's nothing to cheer about after eight years of GST draining state coffers without refunds.

In a fiery press meet in Mysuru, Siddaramaiah pointed out a glaring unfairness: Uttar Pradesh gets 17-18% of central grants, while Karnataka is stuck with just 3.5%. "We send ₹4.5 lakh crore in taxes to Delhi every year, but only get back 14%. That's not right," he said, demanding the Centre fix its unfair tax collection system. The recent ₹3,200 crore GST refund, he added, is too small to make up for the shortfall.

Siddaramaiah suggested the Centre's actions look deliberate, noting that the 15th Finance Commission had promised Karnataka special funds, but Finance Minister Nirmala Sitharaman canceled them. "They blocked ₹4,590 crore we were owed, plus another ₹11,490 crore, including ₹5,000 crore more," he said, listing ignored funds for lake cleanup (₹3,000 crore), Bengaluru's outer ring road (₹3,000 crore), and the Upper Bhadra irrigation project (₹5,400 crore). "This feels intentional—why else ignore the commission's advice?" He made it clear: "If we have to, we'll go to court to get our money."

Also Read: Karnataka Wife Uncovers Husband’s Dark Web of Secret Recordings and Coercion

He also slammed the Centre's "GST Utsav" event, led by BJP leaders, as a publicity stunt timed for Bihar's upcoming elections. "They started GST in 2017, and now they tweak it and celebrate? Will they refund the extra taxes we paid for eight years?" he asked. The new tax changes, he warned, will cost states like Karnataka ₹15,000 crore yearly, while the Centre escapes the hit. "We can't fight the changes, but we're the ones losing out," he said, noting the strain on state projects like roads and schools.

Switching gears, Siddaramaiah gave an update on Karnataka's caste census, which he called a social, economic, and education survey to help plan fair policies. "We've covered over three crore people and 80% of homes by Thursday," he said, hoping to finish by October 7. Brushing off claims from some groups that the survey fuels division or conversions, he asked why BJP leaders aren't opposing the Centre's own caste census. "This isn't about splitting castes—it's about helping everyone with better jobs and education," he explained.

With Karnataka—a major economic hub driving 8% of India's GDP—feeling shortchanged, Siddaramaiah's legal threat signals a growing clash between states and the Centre. Other southern states like Tamil Nadu and Telangana have raised similar complaints about unfair funding. As Karnataka grapples with droughts and city traffic woes, the missing billions hurt plans for farmers, infrastructure, and more.

With budget talks nearing, Siddaramaiah's court warning could spark similar moves by other states, turning State-Centre relations into a heated battle. In Bengaluru, the message is loud: Karnataka won't sit quietly while its dues are held back—the fight for what's owed is just getting started.

Also Read: Karnataka Congress Leader Warns of ‘Designed Conspiracy’ by BJP