CM Shivakumar urges Centre to give Karnataka and South India their fair share of funds
Mahabalipuram: Karnataka Chief Minister D.K. Shivakumar on Thursday urged the Centre to ensure a fair share of funds and representation for Karnataka and the other southern states, stressing their significant contribution to India’s economic growth.
Speaking at the 31st Southern Zonal Council meeting, chaired by Union Home Minister Amit Shah in Mahabalipuram of Tamil Nadu on Thursday, CM D.K. Shivakumar said he would present the Council with specific issues, relevant data and solutions proposed by Karnataka during the discussions.
“Karnataka has not come here to complain. We have come to highlight the respect and fairness that states driving the economy deserve. Walk alongside us. Together, we can continue to advance the opportunities that will illuminate India’s future,” he said.
Shivakumar said he was speaking not only on behalf of Karnataka but also for the whole of South India. He noted that the five southern states account for around 20 percent of India’s population but contribute nearly 33 percent of the country’s GDP. “One out of every three rupees generated in India’s economy comes from South India,” he said, describing Karnataka as one of the key drivers of the country’s economic growth.
Highlighting Karnataka’s economic contribution, Shivakumar said the State ranks first in software exports and accounts for 42 percent of India’s software exports. With around 1,100 Global Capability Centres, Karnataka has the highest number of such centres in the country. Between 2019 and 2025, it attracted more than 21 percent of India’s total FDI equity inflows, he said.
Although Karnataka accounts for only 5.5 percent of India’s population, its contribution to the national GDP is around 9 percent. Its per-capita income is nearly twice the national average. The State also accounts for about 60 percent of India’s aerospace industry, 70 percent of its coffee production and 90 percent of processed cucumber exports, he said.
Turning to fiscal issues, Shivakumar said Karnataka’s share in the divisible pool of taxes fell from 4.7 to 3.6 percent during the 15th Finance Commission period, resulting in an estimated loss of Rs 65,000 crore over six years. He said the 15th Finance Commission had recommended a special grant of Rs 5,495 crore and State-specific grants of Rs 6,000 crore, but neither had been released.
He said the 16th Finance Commission had partially restored Karnataka’s share by raising it from 3.64 to 4.131 percent, but argued that it should be restored to 4.7 percent. “A State that performs well in terms of growth and revenue should be encouraged, not penalized,” he said.
On the proposed delimitation of Lok Sabha constituencies, Shivakumar said South India’s economic contribution should be reflected in its political voice. He urged that the 1971 population basis be respected and that the region’s representation not be reduced either numerically or proportionately.
He also sought women’s reservation within the existing number of Lok Sabha seats, without waiting for another census.
On water sharing, Shivakumar said the Cauvery, Krishna, Tungabhadra, Pennar and Palar rivers were lifelines of the southern peninsula. “Water should unite us, not divide us,” he said, calling for a shift from water-sharing disputes to greater cooperation.
He also urged the Centre to reconsider the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, arguing that it could undermine the States’ right to levy taxes on major minerals.
Shivakumar further called for stronger laws, enforcement mechanisms and stringent action to tackle the growing challenge of drug trafficking.