Synopsis
The Union government has increased Karnataka's tax allocation by 10% for the 2025-26 financial year. Union Minister Pralhad Joshi announced that the total amount will reach Rs 51,876 crore, emphasizing significant growth under PM Modi's leadership. However, state leaders criticized the Union Budget for not meeting local demands.Key Takeaways
- Karnataka receives 10% more tax funds.
- Total tax allocation for 2025-26 is Rs 51,876 crore.
- Tax allocation has increased by 108% since 2014-15.
- Rs 7,564 crore allocated for 15 railway projects.
- Complete tax exemption for startups until April 2030.
Bengaluru, Feb 4 (NationPress) The Union government has allocated 10 percent more tax funds to Karnataka compared to last year, as announced by Union Minister for Food, Public Distribution and Consumer Affairs Pralhad Joshi.
On Tuesday, Minister Joshi revealed that Karnataka is set to receive Rs 51,876 crore in tax allocation for the 2025-26 financial year.
In the 2014-15 financial year, Karnataka's tax allocation stood at Rs 24,789.78 crore. This figure has surged by 108 percent to reach Rs 51,876 crore for 2025-26, he noted.
He highlighted that under the leadership of Prime Minister Narendra Modi, Karnataka has experienced remarkable advancements, particularly in railway projects.
The 15th Finance Commission has determined Karnataka’s tax share at 3.647 percent. From 2004 to 2014, the state received a total of Rs 81,795 crore. In contrast, under the Modi-led NDA government from 2014 to 2024, Karnataka has been allocated Rs 2,85,452 crore in tax funds.
The Union government has approved Rs 7,564 crore for 15 essential railway projects in Karnataka, marking the highest investment in railway infrastructure for the state.
Minister Joshi also announced that complete tax exemption for startups has been extended for 10 years (until April 2030), with Rs 10,000 crore allocated to support these initiatives.
He expressed optimism that these significant reforms and investments will pave the way for a promising future for Karnataka, positioning it as a center for innovation and growth.
However, Karnataka Chief Minister Siddaramaiah criticized the Union Budget 2025, labeling it disappointing and harmful to the state's interests.
"Not a single demand we raised in the pre-budget meeting was fulfilled. Karnataka, one of the highest tax-paying states, received nothing in the Budget," he asserted.
In response to the Union Finance Minister Nirmala Sitharaman's claims regarding Karnataka's financial status, state Home Minister G. Parameshwara questioned her contributions to the state.
He stated, "Nirmala Sitharaman is the Finance Minister of our nation, and we respect her. However, as a Rajya Sabha member from Karnataka, she has failed to advocate for our state's interests."
He further added, "This issue isn't new; it has persisted over time. What has she done for our state? She hasn't implemented a single scheme we can commend her for. If she had, I would have acknowledged her efforts."
