Karnataka Chief Minister Siddaramaiah presented the state Budget for the financial year 2026–27 in the Assembly on Friday, marking his 17th budget presentation. The total outlay stands at Rs 4,48,004 crore, reflecting a 13.3 per cent increase over the revised estimates for 2025–26. The CM highlighted that Karnataka continues to lead the nation in key development indicators and remains a major contributor to India’s tax revenue.

Siddaramaiah defended the state’s Guarantee Schemes, saying they have significantly improved the economic conditions of millions of families and enhanced purchasing power. At the same time, he criticised the Union Government for policies that he said impose additional financial pressure on the state. “Reduced central share in Centrally Sponsored Schemes, discriminatory allocations in Central Sector schemes, and untimely GST rationalisation have all increased the burden on Karnataka’s exchequer,” he stated, urging a cooperative federal approach to governance.

The Chief Minister underscored Karnataka’s robust economic performance, noting that the state recorded a real GSDP growth of 8.1 per cent at constant prices in 2025–26, surpassing the national growth rate of 7.4 per cent. He highlighted Karnataka’s broad-based sectoral growth and said the state has emerged as a globally integrated economy, with leadership in IT, biotechnology, aerospace, defence manufacturing, electronics, and advanced manufacturing.

Also Read: Infrastructure, Rail, Healthcare Projects Worth ₹7,100+ Crore to Be Launched by PM Modi

Siddaramaiah also drew attention to foreign direct investment, noting that Karnataka saw a 2.6-fold increase in FDI inflows, while other major states such as Maharashtra, Gujarat, and Delhi experienced declines. He stressed the importance of innovations in Artificial Intelligence and emerging technologies for the state’s future, noting that Karnataka’s economic model seeks to balance global competitiveness with local development.

The CM highlighted employment generation and administrative reforms as key priorities. The state plans to fill 56,432 vacant posts this year, with a one-time relaxation of five years in the upper age limit to address delays due to court cases. Infrastructure development remains a focus, with Rs 8,600 crore allocated for roads, bridges, and public buildings under the Chief Minister’s Infrastructure Development Programme, and an additional Rs 4,000 crore earmarked for its second phase.

Siddaramaiah also emphasised the recognition of Karnataka’s traditional and regional industries, noting that over 45 products have received Geographical Indication (GI) status. “We are investing in people-centric welfare programmes and building a unique Karnataka model of sustainable development,” he said, citing the philosophy of Amartya Sen that economic growth must go hand in hand with human development. The budget reflects a balance between ambitious development goals and the state’s ongoing federal challenges.

Also Read: Karnataka Deputy CM Appeals For Peace Amid US-Israel-Iran Conflict