Bengaluru: Chief Minister Siddaramaiah has requested special financial assistance from the Central Government to tackle flood-related disasters in the Malnad and Western Ghats regions.

Speaking to media after meeting President Droupadi Murmu and Union Finance Minister Nirmala Sitharaman, he said the State has sought Rs. 1.15 lakh crore for Bengaluru’s infrastructure and capital development, along with separate funds for disaster mitigation in flood-prone areas and development of the Kalyana Karnataka region.

The appeal comes after Karnataka officials recently submitted a second supplementary memorandum to the 16th Finance Commission, highlighting significant financial grievances.

The State has seen its share in Central taxes drop from 4.7 percent under the 14th Finance Commission to 3.6 percent under the 15th Finance Commission — a 1.1 percentage point reduction that has resulted in Karnataka receiving over 23 percent less in overall grants and allocations.

Officials estimate this has led to a Rs. 63,000 crore shortfall in tax devolution alone.

Additionally, the State is awaiting Rs. 11,495 crore in pending special grants that were previously earmarked, including Rs. 5,495 crore in general funds, Rs. 3,000 crore for Bengaluru’s Peripheral Ring Road and Rs. 3,000 crore for Bengaluru city’s lake development.  Combined with the tax devolution losses, Karnataka calculates a total financial impact of nearly Rs. 80,000 crore.

The delegation emphasised Karnataka’s disproportionate economic contributions, noting that while the State accounts for just 5 percent of India’s population, it contributes 8.7 percent to national GDP. Karnataka ranks second in GST collections and third among all States in overall GDP. Officials argued that States making such significant economic contributions deserve fairer fiscal allocations, and questioned the rationale behind providing revenue deficit grants to financially weaker States while high-performing States like Karnataka face reduced shares.

They specifically referenced grants given to Kerala, Andhra Pradesh and Tamil Nadu, suggesting Karnataka should either receive similar revenue deficit support or such grants should be discontinued altogether.

Despite maintaining strong revenue performance, Karnataka has been running a fiscal deficit since last year, though officials expect improvement in the coming year.

During the meetings, Nirmala Sitharaman reportedly assured that any unfair treatment of Karnataka would be reviewed and appropriate corrective measures taken. Separately, CM Siddaramaiah said he discussed with the President seven pending Bills that require Central approval, requesting they be expedited through the necessary channels for early clearance.