Karnataka Chief Minister Slams Union Budget 2026 as Offering 'Nothing' for the State
Karnataka Chief Minister Siddaramaiah has launched a sharp critique of the Union Budget 2026 presented by Finance Minister Nirmala Sitharaman, asserting that the financial plan delivers no substantial benefits for the state. Speaking at a news conference in Kalaburagi, Siddaramaiah expressed deep disappointment, stating that Karnataka received zero allocations in key areas.
'Zero for Karnataka and South India'
In his address, Siddaramaiah emphasized that the budget neglects not only Karnataka but the entire South Indian region. "Karnataka got nothing. As usual, they gave us zero. Not only for Karnataka, but there is nothing in it for South India," he declared. This statement underscores a broader regional grievance regarding perceived imbalances in central fund distribution.
High-Speed Rail Corridors: Limited State Benefits
While the budget announced high-speed rail corridors connecting Bengaluru to Hyderabad and Bengaluru to Chennai, Siddaramaiah argued that these projects would offer minimal advantage to Karnataka. He pointed out that most of the rail network for these corridors would lie outside the state's borders.
"Karnataka will not benefit much from it," he noted, suggesting that alternative routes like Bengaluru to Mumbai or Bengaluru to Mangaluru would have been more beneficial for intra-state connectivity and economic growth.
Reduction in Grants for Centrally Sponsored Schemes
The Chief Minister highlighted a significant reduction in grants for Centrally Sponsored Schemes (CSS) compared to previous budget announcements. He revealed that while the Centre had initially allocated Rs 5.41 lakh crore, revised estimates show only Rs 4.2 lakh crore was actually spent.
Siddaramaiah accused the Union Government of consciously reducing revised estimates for CSS, thereby shifting the financial burden onto state governments. He argued that this move exacerbates fiscal stress on states already struggling due to unilateral central decisions and coercive economic policies.
Fiscal Deficit Management Criticized
Further criticizing the Centre's fiscal approach, Siddaramaiah contended that the Union government has contained the fiscal deficit through under-spending and deferring commitments rather than sound fiscal management. "Fiscal discipline cannot be built by postponing promises. True credibility comes from delivering on what is announced," he asserted, questioning the transparency and effectiveness of budget implementation.
Unfulfilled Promises and Neglected Projects
Siddaramaiah listed several key projects where promises remain unfulfilled:
- Mekedatu Project: Despite repeated appeals and clear necessity, approval for the Mekedatu project has not been granted, even after the Supreme Court disposed of a petition challenging it.
- Upper Bhadra Project: Funds promised in the 2023-24 budget have not been released, delaying critical irrigation infrastructure.
- Upper Krishna Project: Continues to be neglected, affecting agricultural and water resource management.
- National Project Status: Not a single major irrigation project in Karnataka has been accorded National Project status, denying the state essential financial and institutional support.
These points illustrate a pattern of overlooked commitments that hinder Karnataka's development and resource management.
Broader Implications for State-Centre Relations
Siddaramaiah's critique reflects ongoing tensions in state-centre fiscal relations, particularly regarding fund allocation and project approvals. His remarks suggest that Karnataka's development needs are being sidelined in national budgeting, potentially impacting economic growth and regional equity.
The Chief Minister's statements call for a more equitable distribution of resources and timely fulfillment of central promises to ensure balanced regional progress across India.
