Union Finance Minister Nirmala Sitharaman on Sunday rejected allegations that Karnataka had been neglected by the Centre, asserting that the state received significantly higher central funds than during the UPA years. She said Karnataka received nearly Rs 4 lakh crore in tax devolution between 2014 and 2026, around five times the amount allocated in the comparable pre-2014 period. The minister also highlighted grants-in-aid worth Rs 2.71 lakh crore and over Rs 18,000 crore under the Centre’s 50-year interest-free loan scheme.
Congress Criticism Addressed
Referring to the Congress’ criticism of the Modi government’s ‘ties with two big industrialists’, Sitharaman defended the PM Jan Aushadhi Kendras, saying they benefit poor and middle-class citizens through affordable medicines. She criticised the Karnataka government for temporarily shutting some centres, calling it an attack on the welfare of the common man.
Financial Details Highlighted
The Finance Minister provided detailed figures to counter the bias claims. She noted that Karnataka’s share in central taxes has increased substantially under the current government, with the state receiving Rs 3.96 lakh crore from 2014-15 to 2025-26, compared to Rs 80,000 crore during the UPA regime from 2004-05 to 2013-14. Additionally, grants-in-aid to the state have risen to Rs 2.71 lakh crore in the same period.
Sitharaman also pointed out that Karnataka has benefited from the Centre’s 50-year interest-free loan scheme for capital expenditure, receiving over Rs 18,000 crore. She accused the Congress party of spreading misinformation and said the Modi government has always prioritised the development of all states, including Karnataka.



