FM Nirmala Sitharaman Refutes Karnataka's Claims of Tax Devolution Bias

Finance Minister Nirmala Sitharaman has refuted claims by the Karnataka government of bias in tax devolution. Karnataka had alleged that the central government was unfairly distributing tax revenues, favoring certain states over others. Sitharaman clarified that the devolution of taxes is based on the recommendations of the Finance Commission, which follows a transparent and formula-based approach. She emphasized that the central government does not have the discretion to alter the distribution of tax revenues and that the process is designed to ensure fairness and equity among all states. The Finance Minister also highlighted that Karnataka has received its due share of tax revenues as per the established norms. The clarification comes amid ongoing discussions about the allocation of financial resources between the central and state governments, with some states expressing concerns about the adequacy and timeliness of fund transfers.