ReferIndia News Karnataka cities get just 15% of promised SFC grants, denied fiscal autonomy, says report

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Karnataka cities get just 15% of promised SFC grants, denied fiscal autonomy, says report

Published on: July 15, 2026, 8:36 p.m. | Source: The Economic Times

Karnataka's city governments received only a fraction of promised state finance commission grants. A significant portion of these funds were diverted to state welfare schemes and parastatal agencies. This leaves urban areas with less financial autonomy and fewer resources for essential services. Smaller towns are particularly impacted by this funding shortfall.

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