Another call for fair devolution

Karnataka Chief Minister Siddaramaiah’s persistent and increasingly vocal concerns about delayed or denied central funds warrant immediate and serious attention. This is not merely a political broadside, but a critical examination of financial allocation that carries serious implications for Karnataka’s development and the welfare of its people. The data released by the Chief Minister, who also holds the finance portfolio, presents a concerning picture of fiscal imbalance, one that demands a transparent and equitable resolution. One of the most significant points of contention is the Jal Jeevan Mission, a flagship central scheme – Karnataka has reportedly been denied Rs 10,889 crore under this mission over the last two years, significantly hampering efforts to provide piped water to households across the state. Furthermore, under the Centrally Sponsored Schemes (CSS) only Rs 18,561 crore has been released out of the Rs 22,748 crore due, leaving a substantial shortfall. Karnataka is currently implementing 67 CSS projects and these delays directly impede the progress of crucial infrastructure and welfare initiatives. Compounding these issues, the delay in the release of pension funds has caused considerable distress to the most vulnerable populations – widows, senior citizens, and the disabled – who depend on the funds for their daily sustenance.

Beyond these immediate shortfalls, the Chief Minister in his budget speech had highlighted another gap: the non-release of Rs 5,495 crore special grant recommended by the Finance Commission. Despite Karnataka contributing Rs 4.5 lakh crore in taxes, its share from the central pool has dropped from 4.7% to 3.6%, translating to an annual loss of Rs 12,000 crore. Siddaramaiah has consistently maintained that Karnataka’s demand for fair devolution is not a plea of charity but a rightful claim. He argues that while economically advanced states are committed to supporting poorer states, this should not come at the cost of their own residents or economic efficiency. This persistent fiscal shortfall, he contends, amounts to continuing injustice to well-performing states.

This is not a partisan tirade but a call for adherence to the principles of cooperative federalism. What is baffling is the silence of union ministers from Karnataka, including heavyweights like Pralhad Joshi (BJP) and H D Kumaraswamy (JDS). Interestingly, union Finance Minister Nirmala Sitharaman was elected to Rajya Sabha from Karnataka. Equally alarming is the inaction of state MPs, particularly those from the BJP, and the bureaucrats tasked with safeguarding Karnataka’s interests in New Delhi. Karnataka’s is not an isolated case – multiple states have accused the Centre of weaponising fiscal policy. The financial well-being of states is inextricably linked to the nation’s overall progress, and any undermining of this balance poses a serious threat to India’s federal structure.