On March 6, in Bengaluru, Karnataka Chief Minister Siddaramaiah presented his 17th budget, announcing a ban on social media for children under 16, upgrading schools, and completing various water projects, including the Mekedatu reservoir, which faces opposition from neighboring Tamil Nadu.
Siddaramaiah emphasized that the government is pursuing a development strategy that balances welfare programs with investments in infrastructure and long-term economic transformation.
He stated that the government is developing a Karnataka-specific economic framework, called the "11G model," to guide the state's growth.
He criticized the BJP-led NDA government at the Centre for not adhering to the constitutional system of federal governance, which he argued was causing "injustice" to Karnataka.
He urged the Union government to be more sensitive to the state's demands while pursuing a development strategy that balances welfare programs with investments in infrastructure and long-term economic transformation.
In his budget speech, Siddaramaiah reiterated Karnataka's commitment to the Mekedatu balancing reservoir project on the Cauvery River and announced a ban on social media for children under 16.
He stated that Karnataka remains at the forefront of the nation's development and is a major contributor to the country's tax revenues.
The total expenditure for 2026-27 is estimated at Rs 4,48,044 crore, Siddaramaiah announced. This is the 17th budget he has presented during his political career.
Drawing an analogy from the epic tradition, the chief minister said, "A cow that yields abundant milk requires proper care. According to Bheeshma, if it becomes weak, the entire cowherd suffers."
He said the Union government should recognize this and respond sensitively to the state's demands. Siddaramaiah also emphasized the importance of cooperative federalism for a diverse country like India.
Highlighting the government's flagship welfare initiatives, the chief minister said the Congress government prioritizes economic security and social stability through the Guarantee Schemes, which are based on the concept of universal basic income. These schemes include unemployment allowance and free bus rides for women.
He stated that major studies in India and abroad show that these schemes are improving the financial condition of crores of families and increasing people’s purchasing power.
At the same time, Siddaramaiah said the government has also focused on capital investment, infrastructure development, and long-term economic transformation. Citing economist Amartya Sen, he said that economic development that neglects investment in human development is not only unstable but also unethical.
He said, "We are investing in welfare schemes for the people with this understanding."
He explained that the "11G model" includes components such as a guarantee economy promoting welfare and gender equality, good public education aimed at universal access to quality education, good health for all through comprehensive healthcare, a grassroots economy focused on agriculture and rural development, and good governance through people-friendly administration.
He also said that the model incorporates initiatives for labor welfare, geographical equality to reduce regional disparities, a global trade economy to promote trade and industry, a tourism-driven economy, a green economy encouraging renewable energy and environment-friendly activities, and a growing urban economy supporting sustainable urban growth.
"These economic principles form the basis on which we are steering the chariot of the state’s development," Siddaramaiah said, adding that the finance department's budget documents elaborate on how the framework defines Karnataka’s unique development model.
With the slogan "Better Learning, Brighter Future," 800 schools will be upgraded to Karnataka Public Schools (KPS). This will facilitate providing quality education under one roof.
According to him, an expenditure of Rs 3,900 crore will be incurred for this purpose over the next three years.
Siddaramaiah accused the Centre of treating Karnataka unfairly by disregarding the constitutional principles of cooperative federalism.
"Reduced Central share in centrally sponsored schemes, discriminatory allocation in Central Sector schemes, injustice due to 15th Finance Commission's revenue sharing formula, non-implementation of special grants, recommended by the same commission, and the untimely rationalisation of the GST rates have all led to additional burden and pressure on the state exchequer," Siddaramaiah said.
He also said that rate restructuring resulted in reduced GST collections by Rs 10,000 crore for the current fiscal year in Karnataka, and there will be a reduction of Rs 15,000 crore next year.
Siddaramaiah further said that Karnataka continues to demonstrate strong fiscal performance and robust revenue mobilisation capacity. Despite structural challenges due to the Centre's tax policy changes, Karnataka's own revenue collection exhibited resilience, he claimed.
