Union Budget 2026: Karnataka betrayed and South ignored, says CM Siddaramaiah

Bengaluru: Karnataka Chief Minister Siddaramaiah launched a scathing attack on the Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman on Sunday, terming it the "most disappointing" financial statement of his political career. Likening the central proposals to a "municipality corporate budget," the Chief Minister accused the Centre of betraying Karnataka and offering nothing substantial to the entire South Indian region.

"This is the most disappointing budget I have seen in my political career. It is no better than a corporation budget. Karnataka has got nothing. As usual, Karnataka has been betrayed. The entire South India has got nothing from this budget," Siddaramaiah said.

Highlighting specific fiscal grievances, Siddaramaiah pointed out that the allocation for centrally sponsored schemes had been slashed from Rs 5.41 lakh crore in the previous fiscal to Rs 4.2 lakh crore. He detailed extensive cuts across critical sectors, noting that despite claims of strengthening defense, the aircraft division saw its funds drop from Rs 72,780 crore to Rs 63,734 crore. Similarly, the urea subsidy was reduced from Rs 1.26 lakh crore to Rs 1.16 lakh crore, and allocations for environmental protection and the supposedly prioritized AI mission also faced significant reductions, with the latter being halved to Rs 1,000 crore.

The Chief Minister was particularly critical of the infrastructure announcements, dismissing the proposed Hyderabad–Bengaluru and Chennai–Bengaluru high-speed rail corridors as having little benefit for the state's internal connectivity. He argued that a genuine attempt to help the region would have focused on Bengaluru–Mumbai or Bengaluru–Mangaluru links instead. He further lamented the complete absence of support for the Bengaluru Metro, suburban rail, and vital irrigation projects, emphasizing that despite Karnataka contributing 8.7 percent to the national GDP and ranking first in individual tax collection, the state continues to face fiscal injustice.

Describing the Modi government as "tired" and "exhausted," Siddaramaiah alleged that the budget lacked a clear roadmap to address the devaluation of the rupee, declining foreign investment, or the trade deficit. He remarked that in its 13th budget, the government seemed to finally validate the objectives of Mahatma Gandhi and the Congress party by focusing on Buddhist historical sites, but ultimately failed to address the pressing needs of SCs, STs, farmers, and the higher education sector.

(Inputs from IANS)