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Modi Government Gave ‘Chombu’ To Karnataka, Says Siddaramaiah On Union Budget 2026

Karnataka Chief Minister Siddaramaiah on Sunday strongly criticised the Union Budget 2026-27, calling it "very disappointing" and alleging that the state had been ignored by the Centre.

Modi and Siddaramaiah on Budget
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Karnataka Chief Minister Siddaramaiah criticized the Union Budget 2026-27 for allegedly neglecting the state, particularly regarding high-speed rail, irrigation projects, and tax devolution, while noting concerns about cuts in defense, agriculture, disaster relief, and the India AI Mission, and highlighting disparities in allocations compared to other states like Uttar Pradesh and Maharashtra.

Addressing a news conference in Kalaburagi, Siddaramaiah said Karnataka had received nothing meaningful in the Budget and accused the Union government of neglecting the state's long-pending demands.

'Nothing Has Been Given to Karnataka'

"Nothing has been given to Karnataka, they have given a 'chombu.' They have assured two high-speed trains linking Bengaluru and Hyderabad and Bengaluru and Chennai in five years. We wanted high-speed trains linking Bengaluru with Mumbai, Pune and Mangaluru," the Chief Minister said.

He added that the proposed high-speed rail corridors would offer limited benefit to Karnataka as most of the route length lies outside the state. According to the state government, corridors such as Bengaluru-Mumbai or Bengaluru-Mangaluru would have been more useful. It also noted that the Budget made no mention of the Bengaluru Metro or the suburban rail project.

Demand for Higher Share in Tax Devolution

Siddaramaiah, who also holds the finance portfolio, reiterated his long-standing demand for a higher share for Karnataka in vertical tax devolution. He said the state had sought at least a 50 percent share but was allocated only 41 percent.

"We had asked for at least 50%. When Modi was the Gujarat CM, he asked 50%. However, they are merely giving 41%," he said.

Referring to the recommendations of the 16th Finance Commission, he pointed out that states such as Bihar and Uttar Pradesh were receiving a larger share. The government statement added that Karnataka contributes 8.7 percent to the national GDP and ranks first in per capita tax collection, yet continues to receive lower allocations.

No Support for Irrigation and Key Projects

The Chief Minister also criticised the absence of support for irrigation projects in the Budget. "We had asked for Upper Bhadra and Upper Krishna projects to be declared as national projects," he said, while also hitting out at delays in clearances for river water projects such as Mekedatu and Mahadayi.

According to the state government, despite the overall Budget rising by about 5.56 percent to ₹53.47 lakh crore, several critical sectors saw cuts in allocations.

Cuts in Defence, Agriculture and Disaster Relief

In defence-related spending, funds for the aircraft division were reduced from ₹72,780 crore to ₹63,734 crore, while allocations for national security technology fell sharply from ₹31,631 crore to ₹9,800 crore, the statement said. In agriculture, the urea subsidy was cut from ₹1.26 lakh crore to ₹1.16 lakh crore. "There is no priority for farmers and the rural economy," Siddaramaiah said.

The allocation for the India AI Mission was also halved from ₹2,000 crore to ₹1,000 crore.

Raising concerns over disaster relief, the statement noted that under the State Disaster Response Fund for 2026-31, Maharashtra was allocated ₹31,597 crore and Uttar Pradesh ₹16,342 crore, while Karnataka received ₹5,135 crore. For grants to local bodies over five years, Karnataka was allotted ₹37,372 crore, compared with ₹1.16 lakh crore for Uttar Pradesh and ₹79,620 crore for Maharashtra.

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