Published Feb 01, 2026 | 6:59 PM ⚊ Updated Feb 01, 2026 | 6:59 PM
Karnataka CM Siddaramaiah. (X)
Synopsis: Siddaramaiah said the Budget did not mention anything on arresting the falling value of the rupee. Additionally, the Budget skipped proposals to address declining foreign investment, rising imports, and falling exports.
Karnataka Chief Minister Siddaramaiah on Sunday, 1 February, criticised the Union Budget, which he said lacked vision or direction.
Stating that the Budget ignored Karnataka and South India, the chief minister said that it was filled with hollow words with no clear roadmap or vision for the country’s development.
He further mentioned that there was no mention of how the falling value of the rupee will be corrected. Foreign investment is declining, imports are rising, exports are falling, yet there are no proposals to address these issues.
Urea subsidy has been reduced from ₹1.26 lakh crore to ₹1.16 lakh crore. Despite claiming priority for defence, allocations to the aircraft division have been reduced from ₹72,780 crore to ₹63,734 crore. Allocation for addressing environmental pollution has been reduced from ₹1,300 crore last year to ₹1,091 crore this year.
There are no mention of irrigation projects in Karnataka and Bengaluru metro or suburban rail projects along with not much priority given for farmers or rural economy, he noted.
Based on Finance Commission recommendations, all states received ₹24,257 crore under SDRF in 2025–26. For 2026–27, only ₹22,574 crore has been allocated. SDMF allocation has been cut from ₹9,250 crore last year to ₹5,641 crore this year.
“Overall, this Budget is of no significance from the state’s perspective,” Siddaramaiah said.
He also stated that the state has been treated unfairly in the recommendations of the 16th Finance Commission. Under the 16th Commission, Karnataka’s share is 4.131%, which is still 0.58% less than the 14th Finance Commission.
“Disaster relief funding has been inadequate. From 2026–27 to 2030–31, Karnataka was allocated only ₹5,135 crore under SDRF, compared to Maharashtra’s ₹31,597 crore, Madhya Pradesh’s ₹12,847 crore, and Uttar Pradesh’s ₹16,342 crore,” he said.
Siddaramaiah further stated that no special consideration has been given to irrigation projects, Kalyana Karnataka development, and Bengaluru development among other demands the state had raised. Despite demands to increase the tax devolution share from 41% to 50%, it has been retained at 41%, he added.
