Bengaluru, Sep 25 Karnataka Minister Eshwar Khandre on Friday questioned why the Centre was imposing on the state a condition that, he alleged, was not applied to Assam, Bihar, Gujarat and Uttarakhand while releasing 15th Finance Commission grants.
He alleged that the Centre’s “discriminatory policy” had deprived Karnataka of Rs 2,186.20 crore that was due to the state for 2025-26.
Responding to a question on the shortage of funds in Karnataka’s gram panchayats, Khandre said the Centre releases Finance Commission grants to the state, which is required to transfer the funds to gram panchayats within 10 days. If it fails to do so, the amount has to be released with interest, he said.
The receipt of funds by gram panchayats is required to be uploaded on the e-GramSwaraj portal.
The Rural Development and Panchayat Raj minister said Karnataka received Rs 2,133.25 crore for gram panchayats during 2024-25, while receipts worth Rs 1,907 crore were reflected on the portal, leaving a difference of about Rs 225 crore.
“This amount has physically reached the gram panchayats. Action plans have been prepared, and works have been taken up. It has not been reflected on the portal due to a technical issue,” he said.
“It is a grave injustice to withhold Rs 2,186 crore over such a minor issue,” he added.
Khandre cited figures from other states to allege that the Centre was applying different standards.
“Rs 470 crore was released to Uttarakhand in 2024-25. The amount acknowledged on the portal is zero. Despite this, the state received the full grant for the 2025-26 financial year,” he said, alleging that the Centre was treating states differently.
“In the same financial year (2024-25), Rs 2,619 crore was released to Gujarat, while the portal shows an acknowledgement of Rs 2,104 crore. Even though there is a difference of Rs 515 crore, the state has received the full amount. Assam was released Rs 1,315 crore, but the portal shows an acknowledgement of Rs 447 crore. Despite a difference of Rs 867 crore, this state has also received the full amount,” he said.
Similarly, Rs 4,109 crore was released to Bihar, while the amount acknowledged on the portal was only Rs 1,775 crore, he said. Despite a difference of Rs 2,334 crore, the state had still received the full grant, he added.
“Is this not discrimination?” Khandre asked, alleging that the Centre was granting exemptions to states of its choice while denying Karnataka its due share.
He said withholding funds when Karnataka was facing drought conditions was “inhumane” and announced that the state would soon approach the Supreme Court over the issue.
The minister said the department had written to the Centre on December 8, 2025, January 19, March 25, April 4 and April 17, 2026, seeking release of the funds.
The CM wrote to the (union) Finance minister and the union minister concerned on February 25, April 6 and July 16, 2026, he said.
“Despite repeated representations, including my letters to all MPs and meetings with Union ministers, the funds have not been released,” he said.
(PTI News)
