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Karnataka Chief Minister D K Shivakumar on Thursday made a strong pitch for greater fiscal and political equity for the southern states, calling for fairness in the allocation of funds, a stronger voice in decision-making and due respect for the states that contribute significantly to the country's economy.
Addressing the 31st meeting of the Southern Zonal Council here, CM Shivakumar said the South was the "engine of the Indian economy", with the five southern states accounting for nearly 33 per cent of the country's GDP despite having about 20 per cent of its population. "Karnataka is one of the strongest drivers" of this growth, he said, highlighting the state's contribution to software exports, foreign investment, aerospace, coffee and emerging technologies. CM Shivakumar said Karnataka accounted for 42 per cent of India's software exports, hosted around 1,100 Global Capability Centres and attracted over 21 per cent of India's FDI equity inflows between 2019 and 2025. The state, with 5.5 per cent of India's population, contributes about nine per cent to the country's GDP, he said. "Pride demands fairness in return. We have always done our part. We contribute, we build, we grow, and we carry the nation forward. All we ask from the Union Government is this: please care as much as we share," he said. On devolution, CM Shivakumar said Karnataka's share in the divisible pool under the 15th Finance Commission had fallen from 4.7 per cent to 3.6 per cent, which he said resulted in an estimated loss of Rs 65,000 crore to the state over six years. He also pointed out that the 15th Finance Commission's recommended special grant of Rs 5,495 crore and state-specific grants of Rs 6,000 crore had not been released. Welcoming the increase in Karnataka's share to 4.131 per cent under the 16th Finance Commission, CM Shivakumar said the state's share should ultimately be restored to 4.7 per cent. "Karnataka is the second largest contributor to GST and to Income Tax, and a State that performs on growth and revenue deserves to be incentivised, not penalised," he said. He urged the Centre to compensate Karnataka through additional projects, including the Bengaluru-Mumbai high-speed rail project, STRR South, an AIIMS in Raichur and a special package for Kalyana Karnataka. The Chief Minister also raised the issue of delimitation, saying the South's success in controlling population growth should not result in a reduction in its political influence. "We welcome the assurance that no southern state will lose seats. But representation is not only about numbers. It is about weight, and about voice," he said. CM Shivakumar called for the 1971 population basis to be honoured and the South's representation to be protected both in absolute numbers and proportion. He also urged the Southern Zonal Council to adopt a resolution freezing the number of Lok Sabha seats at the current level while providing women's reservation within that existing number. "Women have waited long enough for their rightful representation. Their reservation should not have to wait for a population count," he said. Turning to water issues, CM Shivakumar said rivers such as the Cauvery, Krishna, Tungabhadra, Pennar and Palar were the lifelines of the southern peninsula and called for a shift from "water sharing to water cooperation". Referring to the June 25 meeting involving Karnataka, Andhra Pradesh and Telangana, he said the three states had demonstrated that interstate water issues could be addressed through dialogue. "We accept that every riparian State has legitimate needs. And our stand rests on three principles: Equity. Transparency. Cooperation," he said. At the same time, he asserted that cooperation must be reciprocal and Karnataka's lawful share under tribunal awards and timely completion of projects benefiting its farmers must be protected. CM Shivakumar said he would place Karnataka's position on the Krishna, Upper Bhadra and interlinking of rivers before the Council. He also flagged concerns relating to healthcare financing, education and nutrition, housing for poorer families, coastal erosion and disaster support, mining rights, land provided by states to Central institutions, justice delivery, digital infrastructure, financial inclusion and support for farmers. On mining, he urged the Centre to reconsider the Mines & Minerals (Development & Regulation) Bill, 2026, contending that it affected the states' right to tax major minerals. He also called for stronger laws and enforcement against drug trafficking, saying those profiting from the trade should face "swift and stringent prosecution". "These are not isolated demands. They concern the larger question of how we make cooperative federalism work better for our people," CM Shivakumar said. "Karnataka has not come here to complain. We come as a partner in the Indian story. All we ask in return is fairness," he said. "When Karnataka is strong, the South is stronger. And when the South is strong, India is stronger," he added. "Walk with us. Fund us fairly. And give the South its due. And we will continue to give India its future," CM Shivakumar added. (ANI)
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