Karnataka's Rs 4.48 Lakh Crore Budget 2026-27: CM Siddaramaiah Touts State Leadership

Siddaramiah said that Karnataka continues to lead the nation in all sectors of development. "We are one of the major states that contributes the highest to the tax revenue of the country," he said.

Defending the guarantee schemes, he stated that these schemes have significantly improved the economic conditions of crores of families and enhanced the purchasing power of the people.

However, CM Siddaramaiah, targeting the Centre, said: "The cow that yields abundant milk requires proper care. It is Bheeshma's philosophy that if it becomes weak, the entire cowherd suffers. Recognising this principle, we urge the Union Government to respond sensitively to the needs of the state."

Stressing that a diverse country like India can achieve progress only through a truly cooperative federal system, he said: "Though we have been striving for the development of our state beyond our capacity, the Union Government continues to treat our State 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 the Fifteenth Finance Commission's revenue sharing formula, non-implementation of special grants recommended by the same Commission, and the untimely rationalisation of GST rates have all led to additional burden and pressure on the state exchequer," the CM maintained.

"The systematic weakening of the Mahatma Gandhi National Rural Employment Guarantee Scheme by the Union government threatens the people's right to employment and increases the financial burden on states. Under such circumstances, everyone must unite across party lines to safeguard the interests of the state and assert its rightful claims," the CM noted.

Siddaramaiah said that the state's economy recorded a strong real GSDP growth of 8.1 per cent at constant prices in 2025-26, surpassing the national growth rate of 7.4 per cent for the same period. This performance was supported by broad-based sectoral growth and reflects the state's diversified and stable growth pattern.

While several other major state economies, such as Maharashtra, Gujarat, and Delhi, recorded a decline in FDI inflows during this period compared to the previous year, Karnataka registered a significant increase of 2.6 times, underscoring its growing attractiveness as an investment destination, he stated.

"Karnataka today is one of the most globally integrated state economies in India. Our leadership in Information Technology and IT-enabled services, biotechnology, aerospace and defence manufacturing, electronics and semiconductor design, start-up innovation, and advanced manufacturing has positioned us as a key contributor to India's exports and foreign direct investment inflows. Consequently, recent developments relating to tariff measures and evolving trade arrangements involving the United States and other major economies have important implications for our state," he said.

"Karnataka plays a distinctive role in national and international trade. Rapid developments in Artificial Intelligence (AI) are transforming global production systems. Innovations in science and technology are increasingly shaping the trajectory of our state. In this context, I am presenting this budget with the sense of responsibility and foresight that we must move forward with the resolve to turn 'fire into light'," he said.

"Immediately upon assuming office in 2023, our government prioritised providing economic security and social stability to people through the implementation of Guarantee Schemes inspired by the concept of Universal Basic Income. Numerous national and international studies indicate that these schemes have significantly improved the economic conditions of crores of families and enhanced the purchasing power of the people. We are investing substantially in people-centric welfare programmes, based on the premise by Amartya Sen that 'economic growth that neglects investment in human development is not only unstable but unethical'," he said.

The Chief Minister said that they are formulating a unique Karnataka model of strong and sustainable development. "More than 45 products from Karnataka have received Geographical Indication (GI) status. This recognition reflects the traditional ingenuity of our people and contributes significantly to employment generation," he said.

"We are strengthening the administrative system by filling vacant posts in major departments. In line with our election manifesto, employment generation remains a priority. This year, we have initiated the process to fill 56,432 posts. Considering delays due to court cases in recruitment processes, we have granted a one-time relaxation of five years in the upper age limit," he underlined.

"Along with filling government posts, we are prioritising the construction of roads, bridges, and public buildings. In addition to departmental allocations, we have taken up roads and infrastructure works to the extent of Rs 8,600 crore under the Chief Minister's Infrastructure Development Programme, which was launched last year. We will take up works of Rs 4,000 crore as the second phase of this programme during the present year," CM Siddaramaiah said.

- IANS