Bengaluru, 4 September 2026: Karnataka Chief Minister D.K. Shivakumar has urged the NITI Aayog to support the State in securing its “due share” of Central funds, including grants announced by the Union government in earlier Budgets.
Shivakumar raised the issue during his meeting with NITI Aayog Vice-Chairman Ashok Kumar Lahiri in Bengaluru on September 2. He called for greater Centre-State cooperation and said Karnataka should receive all possible support from the policy think tank.
Karnataka seeks its due share
Shivakumar specifically sought NITI Aayog’s support in ensuring that Karnataka receives its rightful share of Central financial assistance, including grants announced in previous Union Budgets. Chief Minister linked the demand to the broader principle of cooperative federalism, arguing that the development of individual States is essential for the overall growth of the country.
“Under the federal system, the States and the Centre need to work in cooperation with each other,” Shivakumar said, according to the report on the meeting. He also urged NITI Aayog to extend all possible support to Karnataka.
Population-based allocation becomes a key issue
Chief Minister also raised concerns over the population-based approach to allocation of Central funds. Shivakumar argued that Southern States that successfully implemented population-control measures should not be disadvantaged because of their lower population growth.
He referred to discussions with Union Home Minister Amit Shah and said Southern States had effectively implemented population-control measures, while arguing that Central fund distribution should not primarily rely on population in a manner that penalises those States for their demographic performance. The issue is part of a wider debate among Southern States over how Central resources should be distributed while recognising both population and the contribution of States to the national economy.
NITI Aayog’s role
Chief Minister sought a stronger role for NITI Aayog in supporting Karnataka’s development priorities and in helping the State secure Central assistance. Shivakumar said Karnataka has made a significant contribution to the country's economic development and that the Centre and States must work together in the national interest.
He also highlighted Karnataka’s strengths in areas including GSDP, per capita income, human development, technology and innovation, foreign investment, exports, startups and IT services as part of his case for greater support.
A broader Centre-State funding debate
Karnataka’s demand comes amid a continuing debate over the distribution of Central resources between the Union and the States, particularly over how much weight should be given to population in fiscal allocations.
For Karnataka, the argument is that States which have controlled population growth while contributing strongly to the national economy should not see their financial position weakened as a consequence. Meeting with NITI Aayog therefore puts Karnataka’s demand for a fairer and more supportive Centre-State financial relationship back into focus.
For the State government, the immediate priority is clear: securing pending or previously announced grants, protecting Karnataka’s interests in future allocations and ensuring that development-oriented States are adequately supported within India's federal framework.
Keywords
Karnataka central funds, D K Shivakumar, NITI Aayog, Karnataka funding, population-based allocation, Centre-State relations