Karnataka’s tax devolution this fiscal stands at ₹51,876 crore

Chief Minister Siddaramaiah says the devolution is way lower than expected for a State that is number two among the highest tax contributing States.
| Photo Credit: SRIRAM M.A.

The 2025-26 Union Budget, presented by Finance Minister Nirmala Sitharaman on Saturday, devolves ₹51,876 crore to Karnataka as its share in taxes and duties, which stood at ₹46,932.72 crore in the previous fiscal.

While this shows a marginal increase, Chief Minister Siddaramaiah has expressed unhappiness over several of the specific demands of the State, which were put forth, not being met, and the devolution remaining way lower than expected for a State that is number two among the highest tax contributing States in the country. States like Uttar Pradesh and Bihar get a far higher share, at ₹2.55 lakh crore and ₹1.43 lakh crore, respectively.

Addressing a press conference in Mysuru, Mr. Siddaramaiah said the State had put forth a list of demands ahead of the Budget, but the Centre had summarily set them aside. The Union Budget has focused on Bihar and Andhra Pradesh for the second successive year in view of the “political compulsions” of the BJP government at the Centre, he said.

For Bengaluru city, the Budget has very little to offer, besides ₹350 crore for the suburban rail project and allocation to metro projects.