Karnataka Cong leaders mull formation of ‘Economic Alliance’ of southern states for equal resource distribution: Report
Karnataka Congress leaders are considering forming an economic alliance of southern states for equal resource distribution from the Centre.
Karnataka Congress leaders are mulling the formation of a forum for southern states that serves as an "economic alliance" to guarantee equal distribution of resources from the Centre. This comes in the backdrop of Congress MP DK Suresh's controversial statement that southern states would be forced to demand for a “separate nation” if the “injustice” in distribution of funds continues.

Karnataka Chief Minister Siddaramaiah also echoed the same on Sunday, alleging “injustice” by the Central leadership over a reduction in tax devolution, which he claimed has given way to a loss of more than ₹45,000 crore to the state in the last four years.
In this light, agreeable parties are coming together to discuss the possibility of forming a congregation. CM Siddaramaiah's economic advisor, Basavaraj Rayareddi, said the proposal to form an "Economic Alliance of Southern States" was on the cards, The Times of India reported.
READ | 'Karnataka faces loss of over ₹ 45,000 crore due to reduced tax devolution': CM Siddaramaiah
“The objective of the proposed forum is in line with the idea of federalism, where all states are assured of equitable rights and opportunities. The southern states need a powerful platform since their voices are not being heard,” Rayareddi said, as quoted by the publication.
The state's Congress leaders have expressed major discontent after the interim budget announcement by Union Finance Minister Nirmala Sitharaman, and scheduled a protest in the national capital on Wednesday over the matter.
READ | 'Separate nation' remark: BJP members protest outside D K Suresh's residence
Neighbouring states Kerala and Telangana are also likely to hold similar demonstrations in New Delhi in the coming days, the publication added.
Karnataka Deputy CM DK Shivakumar also spoke on the issue, saying, “We must raise our voice now. There is no other option but to protest. We are even inviting BJP and JD(S) functionaries to join the Delhi protest. For now, we are protesting on our own. Future action will take its own course.”
ABOUT THE AUTHORYamini C SYamini CS is a Senior Content Producer at Hindustan Times with nearly six years of experience in digital journalism. She is part of the India News desk, where she works on a wide range of stories cutting across civic issues, city-based developments, politics, governance, public policy, breaking news, trending topics, and international affairs that have an impact on India. Her role involves tracking fast-moving developments, verifying information from official and on-ground sources, and presenting news in a clear, accessible format for a digital-first audience. A significant part of her work includes handling live blogs during major news events, such as elections, court verdicts, political developments, civic disruptions, protests, weather-related alerts, and unfolding national or international incidents. Through live coverage, she focuses on timely updates to help readers follow complex stories as they evolve. Before moving to the broader India News desk, Yamini was associated with the Bengaluru desk at Hindustan Times, where she extensively covered urban governance, infrastructure, traffic and transport issues, weather events, public grievances, and civic administration in the city. This experience strengthened her grounding in city reporting and sharpened her focus on citizen-centric journalism. She began her career as a correspondent with Reuters after completing a postgraduate diploma in journalism from the Indian Institute of Journalism and New Media. Her early training instilled a strong emphasis on accuracy, sourcing, and news ethics, which continue to shape her reporting style. Outside of work, Yamini enjoys reading across genres, listening to music, and spending time with her family, which help her maintain balance in a fast-paced newsroom environment.Read More

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