Siddaramaiah-led govt. in regular collision course with the Centre

Chief Minister Siddaramaiah, who has surpassed Devaraj Urs’s record as Karnataka’s longest-serving Chief Minister, appears to have spent a fair duration of his tenure confronting the Centre on on various fronts.

Except for his first year in office (2013–14), the rest of his term coincided with the NDA government led by Prime Minister Narendra Modi, and the presence of rival parties in power at the State and Centre appears to be a major source of friction.

In the latest instance, the Siddaramaiah-led government has launched an attack over the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted during the UPA-I regime in 2005. The Congress has demanded the repeal of the Viksit Bharat–Guarantee for Rozgar Ajeevika Mission (Gramin) (VB-G RAM G) and called for the restoration of MGNREGA’s original right-to-work provisions for 71.18 lakh workers, including 36.75 lakh rural women in Karnataka.

The government also decided to convene a special session of the legislature to debate the merits of the old and new schemes.

Public debate

Taking it further, Deputy Chief Minister D.K. Shivakumar has challenged Union Minister Pralhad Joshi to a public debate on MGNREGA and the VB-G RAM G scheme, after Mr. Joshi alleged corruption worth ₹11 lakh crore in the scheme during the UPA era. The Congress has also announced a week-long padayatra across all levels of the State administration, beginning on Republic Day (January 26).

The Chief Minister has accused the NDA government of weakening the panchayat system by curtailing the powers of rural local bodies to identify and allocate work, and of effectively depriving labourers of their right to employment.

Holding the Finance portfolio as well, Mr. Siddaramaiah stated that the new Act would impose an additional burden of ₹3,000 crore annually on Karnataka by reducing the Centre’s contribution from 90% to 60%. He formally conveyed his opposition to the legislation in a letter to Prime Minister Modi on December 31, 2025.

Earlier cases

Earlier, the Congress government had accused the Centre of “gross injustice” to Karnataka in matters such as tax devolution, grant-in-aid, non-release of drought relief funds, and denial of approvals for water resource projects. In 2024, the Chief Minister, along with Ministers, MLAs, and MPs, staged a protest in Delhi under the banner “My Tax, My Right”.

Mr. Siddaramaiah has repeatedly argued that Karnataka’s tax share should have increased in line with the doubling of the Union Budget from ₹23 lakh crore in 2014 to ₹50 lakh crore in 2025. Instead, the State has continued to receive around ₹50,000 crore annually. He claimed that both the State’s tax share and Central grants have steadily declined over the past decade.

Finance Commission

Mr. Siddramaiah also pointed out that Karnataka’s share fell from 4.71% under the 14th Finance Commission to 3.64% under the 15th Finance Commission, questioning the criteria used for fund allocation. The government has frequently criticised the Centre’s “step-motherly” treatment, particularly for failing to release ₹5,300 crore announced in the 2023–24 Union Budget for the Upper Bhadra project.

Additionally, the Centre has delayed clearances for drinking water projects such as Kalasa Banduri Nala, Mekedatu, and the irrigation project of the Upper Krishna, citing various reasons. With few alternatives left, the Chief Minister and his Cabinet colleagues have made repeated visits to Delhi to submit memorandums seeking approvals and funds.