BENGALURU, Feb. 21 -- State public works minister Satish Jarkiholi on Friday acknowledged that the practice of commissions, or kickbacks, continues to exist within the state's governance system, even as contractors warn of a financial crisis caused by unpaid government bills.

The remarks come at a time when the Karnataka State Contractors Association has announced a statewide protest on March 6, accusing the government of failing to clear pending dues totalling Rs.37,370 crore. Contractors say the delays have strained their finances and threaten to halt infrastructure development.

Responding to questions about allegations of commission-taking within the public works department at a press conference, Jarkiholi offered a candid assessment...