On March 6, Karnataka Chief Minister Siddaramaiah presented his 17th budget, outlining a total state expenditure of over Rs 4.48 lakh crore for the fiscal year 2026-27. He emphasized that the government was pursuing a development strategy that balances welfare programs with investments in infrastructure and long-term economic transformation.
He criticized the BJP-led NDA government at the center, arguing that it was "injustice" to Karnataka by not adhering to the constitutional principles of federal governance.
Siddaramaiah stated that the state remains at the forefront of the nation's development and is a major contributor to tax revenues. He reaffirmed the state's commitment to the Mekedatu balancing reservoir project on the Cauvery river and announced a ban on social media use for children under 16 years.
He said the total expenditure for 2026-27 is estimated at Rs 4,48,044 crore. This is the 17th budget he has presented.
Drawing an analogy from the epic tradition, the chief minister said, "Just as a cow that yields abundant milk requires proper care, so too does Karnataka."
He called for the Union government to recognize the state's needs and respond sensitively. Siddaramaiah also emphasized the importance of cooperative federalism for a diverse country like India.
He highlighted the Congress government's focus on economic security and social stability through welfare programs based on the concept of universal basic income.
He also emphasized the government's focus on capital investment, infrastructure development, and long-term economic transformation.
Siddaramaiah described the government's economic framework, the "11G model," as a guide for the state's growth.
He said that the 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 gig economy initiatives for labour welfare; Geographical equality to reduce regional disparities; a global trade economy to promote trade and industry; a tourism-driven, globe-trotting economy; a green economy encouraging renewable energy and environment-friendly activities; and a growing urban economy supporting sustainable urban growth.
Siddaramaiah accused the Centre of treating Karnataka unfairly by disregarding the constitutional principles of cooperative federalism.
He cited reduced Central share in centrally sponsored schemes, discriminatory allocation in Central Sector schemes, injustice due to the 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.
Siddaramaiah said a weak rural employment scheme threatens the people's right to employment and increases the financial burden on states.
He called for unity across party lines to safeguard the interests of the state and assert its rightful claims.
He further 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.