Bengaluru: Chief Minister Siddaramaiah on Sunday termed the Union Budget 2026–27 as “very disappointing” and lacking foresight, alleging that Karnataka has been ignored in key allocations and project approvals. Addressing a news conference in Kalaburagi, he criticised the Centre for not responding positively to the state’s long-pending demands on tax devolution, irrigation projects and regional development support.
The chief minister, who also holds the finance portfolio, said the Budget failed to meet Karnataka’s expectations and did not reflect the state’s contribution to the national economy. He accused the Union government of neglecting major infrastructure and irrigation proposals submitted by the state government.
Criticism over high-speed rail priorities
Referring to the announcement of two proposed high-speed rail links — Bengaluru–Hyderabad and Bengaluru–Chennai — Siddaramaiah said the projects would benefit neighbouring regions more than Karnataka.
“Nothing has been given to Karnataka — they have given a ‘chombu’,” he remarked, using a colloquial term to suggest emptiness. He said the Centre had assured two high-speed trains linking Bengaluru with Hyderabad and Chennai over five years, but ignored Karnataka’s requests for priority rail connectivity with Mumbai, Pune and Mangaluru.
“We wanted high-speed trains linking Bengaluru with Mumbai, Pune and Mangaluru. Those corridors are more critical for our state’s economic and social movement,” he said. According to him, rail infrastructure planning should reflect trade flows and commuter demand patterns rather than selective corridor development.
Tax devolution share dispute revived
The chief minister reiterated his long-standing demand for a higher share for Karnataka in vertical tax devolution. He said the state had sought a 50% share but continues to receive only 41%.
“We had asked for at least 50%. When Narendra Modi was the Gujarat Chief Minister, he too had demanded 50%. However, now they are giving only 41%,” Siddaramaiah said.
He compared Finance Commission award figures over time, stating that Karnataka’s share has fluctuated unfavourably. “As per the 14th Finance Commission, Karnataka got 4.71%. This reduced to 3.64% in the 15th Finance Commission. Now it is 4.131% under the 16th Finance Commission recommendations,” he said.
He added that the state had argued before the 16th Finance Commission that at minimum it should receive the level recommended by the 14th Finance Commission. “If you don’t give even what was promised earlier, it is a big injustice to Karnataka,” he said.
Comparison with other states
Siddaramaiah cited comparative figures to underline his argument that Karnataka was being treated unfairly in fund distribution. He said Bihar was getting 9.948% of the share under Finance Commission distribution, while Uttar Pradesh was getting 17.931%.
“Even Andhra Pradesh, which is smaller than Karnataka in many parameters, is getting 4.217%. We are not saying do not give to other states. Give to them, but give to us also in a fair manner,” he said.
He argued that progressive, revenue-generating states should not be penalised in the formula used for devolution and grants.
Irrigation and project approvals missing
The chief minister also expressed disappointment that the Union Budget made no mention of irrigation projects proposed by Karnataka. He said several key schemes had been submitted for central support and national project status but were ignored.
“We had sought irrigation projects. There’s not even a letter about it in the Budget. We had sought national project status for the Tungabhadra scheme and Upper Krishna projects,” he said.
He also referred to the Upper Bhadra project, for which Union Finance Minister Nirmala Sitharaman had earlier announced an allocation of Rs 5,300 crore in the 2023–24 Budget. “Not even a single rupee has been given in three years,” Siddaramaiah alleged.
On inter-state water issues, he said that despite legal developments, clearance for the Mekedaatu balancing reservoir project has not been granted by the Union government. He maintained that the project is crucial for drinking water and power needs.
Kalyana Karnataka grant demand
Highlighting regional imbalance concerns, Siddaramaiah said the backward Kalyana Karnataka region required stronger central backing. He noted that after coming to power, the state government had allocated Rs 13,000 crore in grants to the Kalyana Karnataka Regional Development Board (KKRDB).
“We are providing Rs 5,000 crore every year to KKRDB and sought matching grants from the Centre, but there is no mention of that in the Budget,” he said.
He stressed that targeted regional funding is essential to correct historical disparities in development indicators such as education, irrigation and infrastructure.
Conclusion
Siddaramaiah said the state government will continue to press its demands before the Centre and relevant commissions. He maintained that Karnataka deserves greater fiscal support and project approvals in view of its economic contribution and development needs. The Union government has not yet issued a detailed response to the chief minister’s remarks. The debate over devolution share and project allocation is expected to intensify in the coming weeks.