Karnataka Chief Minister Siddaramaiah is set to request a special central grant of ₹50,000 crore for the comprehensive development of Bengaluru, citing the city’s overburdened infrastructure and the growing pressure from a large migrant population. The proposal will be formally submitted during his meeting with Union Finance Minister Nirmala Sitharaman in New Delhi.
Why the Urgent Demand?
According to Siddaramaiah’s team, nearly 40% of Bengaluru’s population comprises migrants who have moved to the city for employment opportunities. While this workforce contributes significantly to the economy and tax revenues, much of that revenue is either retained by the Centre or redirected to their home states. Karnataka, meanwhile, bears the brunt of providing public services, housing, water, transport, and civic infrastructure to this expanding population.
Key Development Priorities
The ₹50,000 crore grant is expected to address several pressing urban challenges, including:
- Traffic congestion and road infrastructure
- Affordable housing and slum redevelopment
- Water supply and sewage systems
- Public transport expansion
- Digital and green infrastructure upgrades
Economic adviser Basavaraj Rayareddi emphasized that Bengaluru, despite being a global tech and biotech hub, has not received adequate central support to match its contribution to the national GDP.
Broader Fiscal Concerns
Siddaramaiah is also expected to raise concerns about Karnataka’s reduced share in central taxes, which dropped from 4.1% under the 14th Finance Commission to 3.6% under the 15th. He will urge the Centre to restore the earlier allocation and ensure fair treatment under the upcoming 16th Finance Commission, effective from April 2026.
Political and Policy Implications
The Chief Minister’s push for central funds comes at a time when Bengaluru’s infrastructure is under intense scrutiny due to rapid urbanization and climate-related challenges. The move is also seen as a strategic effort to secure long-term investments that align with Karnataka’s vision of sustainable urban growth.
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