Bengaluru, Mar 7 (Reporter) Presenting Karnataka Budget 2025-26, Chief Minister Siddaramaiah on Friday expressed concern over the sharp decline in central transfers to the state following the implementation of the 15th Finance Commission’s devolution formula. The Chief Minister highlighted that Karnataka has suffered the steepest decline in its share of tax devolution among states, with its allocation in the divisible pool dropping to 3.647 per cent during the 15th Finance Commission period from 4.713 per cent in the 14th Finance Commission period. This represents a 23 per cent reduction, translating to an estimated revenue loss of Rs 12,000 crore per year. In its report, the 15th Finance Commission had recommended a special grant of Rs 5,495 crore to Karnataka to offset the reduction in the state’s share in devolution. Additionally, it proposed a special grant of Rs 3,000 crore for lake development in Bengaluru and another Rs 3,000 crore for the development of the Peripheral Ring Road, amounting to a total of Rs 11,495 crore. However, the Chief Minister stated that the central government has not released any of these grants. Further, he pointed out that while the Union Budget for 2023-24 had announced Rs 5,300 crore for the Upper Bhadra Irrigation Project, no funds have been disbursed so far. During ongoing deliberations on the state budget, Karnataka has strongly advocated for a higher share in tax devolution before the 16th Finance Commission. The state government has argued that while economically advanced states remain committed to supporting poorer states, this should not come at the cost of their own residents or economic efficiency. The state has proposed that the share of the divisible pool between the Centre and states should be at least 50 per cent to ensure a fair allocation of resources. Additionally, Karnataka has recommended that cesses and surcharges imposed by the Union Government be capped at 5 per cent of gross tax revenue, with any excess amount being included in the divisible pool to ensure equitable distribution among states...////...