Union Budget 2026–27 Most Disappointing in My Political Career, Says Karnataka CM Siddaramaiah

Bengaluru, Feb 2026 : Karnataka Chief Minister Siddaramaiah on Sunday launched a scathing attack on the Union Budget 2026–27, terming it the most disappointing budget he has witnessed in his long political career. Criticising the financial blueprint presented by Union Finance Minister Nirmala Sitharaman, the Chief Minister remarked that the document resembled a “municipal corporation budget” rather than a vision statement for a large and diverse nation like India.

Addressing the media, Siddaramaiah alleged that the Budget had once again ignored Karnataka and, more broadly, the entire southern region of the country. “Karnataka has got nothing. As usual, the State has been betrayed. This Budget has nothing substantial for South India,” he said, expressing strong dissatisfaction with the Centre’s approach.

The Chief Minister highlighted a sharp reduction in allocations for centrally sponsored schemes as a key concern. He recalled that in the 2025–26 Budget, the Union Finance Minister had promised an allocation of ₹5.41 lakh crore for such schemes. “In the current Budget, this allocation has been slashed to ₹4.2 lakh crore. This cut will directly affect States and derail welfare and development programmes,” he warned.

Commenting on the announcement of two high-speed rail projects—Hyderabad–Bengaluru and Chennai–Bengaluru—Siddaramaiah said the projects would offer limited benefit to Karnataka, as they cover only short stretches within the State. “If the Centre was genuinely interested in helping Karnataka, it should have announced high-speed rail corridors such as Bengaluru–Mumbai and Bengaluru–Mangaluru,” he added.

Siddaramaiah also accused the Union Finance Minister of relying on repetitive and cliched phrases while presenting the Budget, arguing that it exposed the Centre’s lack of a clear developmental direction. “This Budget shows that the Central government is exhausted and unable to run the country effectively. Prime Minister Narendra Modi’s government appears tired after presenting its 13th Budget,” he remarked.

In a sharp political comment, the Chief Minister claimed that the Union government had indirectly acknowledged the relevance of Mahatma Gandhi’s ideals and the Congress party’s philosophy. He pointed out that, for the first time, historical sites associated with Buddhism had been mentioned in the Budget, calling it a belated realisation of inclusive cultural priorities.

Siddaramaiah further criticised the Budget for failing to address critical macroeconomic challenges. He noted that there was no discussion on the devaluation of the rupee or any concrete measures to stabilise it. “Foreign investment is declining, imports are rising, and exports are falling, yet the Budget is silent on these pressing issues,” he said.

He alleged that instead of supporting exporters during challenging global conditions, the Centre had curtailed benefits. Tax concessions for exporters, which stood at ₹18,233 crore in the previous Budget, have been reduced to ₹10,000 crore, indicating what he described as a lack of foresight. He also pointed out that the urea subsidy had been cut from ₹1.26 lakh crore to ₹1.16 lakh crore, while allocations for nutrient-based subsidy programmes had also been reduced, adversely impacting farmers.

Questioning the Centre’s claims of strengthening the defence sector, Siddaramaiah said allocations for the aircraft division had been reduced from ₹72,780 crore to ₹63,734 crore. On environmental protection, he noted that funds earmarked to tackle pollution had been cut from ₹1,300 crore last year to ₹1,091 crore in the current Budget.

The Chief Minister also expressed concern over the neglect of social sectors. He said crop insurance for farmers had not been enhanced, higher education had not been prioritised, and the development needs of Scheduled Castes, Scheduled Tribes and Backward Classes had not been adequately addressed. He added that while ₹95,692 crore had been earmarked for the VB-G RAM G scheme, other crucial welfare areas were overlooked.

Siddaramaiah pointed out that Karnataka’s major irrigation projects found no mention in the Budget. He also criticised the reduced allocation for the Artificial Intelligence Mission, which has been cut from ₹2,000 crore in the previous Budget to ₹1,000 crore this year, despite repeated emphasis on AI-led growth.

Highlighting the State’s contribution to the national economy, he said Karnataka accounts for 8.7 per cent of India’s GDP and ranks first in individual tax collection. “Despite this, Karnataka continues to suffer injustice. The State incurred a loss of ₹1.25 lakh crore under the 14th Finance Commission, and it loses around ₹20,000 crore annually due to inadequate GST compensation,” he said, reiterating that the Union Budget had failed to deliver fairness or balance.