Overview Karnataka's Minister for Revenue, Krishna Byre Gowda , has called on the Central Government to acknowledge and support states demonstrating progress, emphasizing the importance of strengthening the country's federal structure. His remarks were made during the Republic Day celebrations in Hassan on January 26, 2026 . Key Developments Fiscal Concerns Tax Distribution: Mr. Byre Gowda highlighted that Karnataka receives only 13 paisa for every rupee paid as tax to the Centre, while other states receive significantly more. 16th Finance Commission: Karnataka anticipates a considerably larger allocation of central taxes from the 16th Finance Commission , aiming for a distribution greater than 4.7% . Allegations of Central Influence: The minister suggested that institutions like the Income Tax, Election Commission, CBI, and the Finance Commission are acting under the Central Government's instructions. Scheme Funding Pradhan Mantri Awas Yojana (PMAY): The Central Government has not revised its contribution to PMAY for the last 12 years , despite rising construction costs. Anganwadi and Midday Meal Workers: Appeals have been submitted for increased financial assistance for Anganwadi workers and midday meal workers. Hassan Development Hassan Airport: Mr. Byre Gowda challenged JD(S) leaders to secure funding for the Hassan Airport, offering land to the Airport Authority of India. UPSC Relevance This news highlights critical issues related to fiscal federalism , Centre-State relations , and the implementation of centrally sponsored schemes . It is relevant for GS2 (Polity and Governance) and GS3 (Economy) . Key Concepts Fiscal Federalism: The division of financial powers and responsibilities between the central and state governments. Centrally Sponsored Schemes: Schemes funded by the central government but implemented by state governments. Finance Commission: A constitutional body that recommends the principles governing the distribution of tax revenues between the Centre and the States. Important Facts Krishna Byre Gowda is the Minister for Revenue in Karnataka. The article references the 16th Finance Commission . The Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing. The event took place during the Republic Day celebrations in Hassan on January 26, 2026 .