While interacting with the media from his residence in Mysuru on Saturday, the Chief Minister mentioned that the union budget for 2025-26 was disheartening, particularly for Karnataka. He emphasized that, similar to the previous year, the central budget again dealt a heavy blow to the state. Ahead of the budget, the state's Revenue Minister, Krishna Byre Gowda, was consulted regarding the budget's implications.
Karnataka's pressing needs and requirements have been ignored continuously, the Chief Minister said. In the Rs 55.46 lakh crore central budget, Karnataka received only Rs 15.68 lakh crore, with a meager Rs 12.7 lakh crore for development.
At present, the total debt of the state is around Rs 202-205 lakh crore, with a 4.4% decrease in fiscal capacity and a 1.5% reduction in revenue.
Although, he admitted that Bihar was provided better funding from the national programs and Andhra Pradesh was accorded more favourable funding through the national adjustments. He also alleged that the fundings for irrigation projects like Bhadrappa Upper Bank, Mahadayi and Krishna Upper Banks which are indispensable to Karnataka, have not been given proper funds.
Notably, the central government had allocated Rs 5300 crore in the 2023-24 budget for the Bhadrappa Upper Bank project, but none of it has been approved as of yet. The Chief Minister expressed frustration at the government's failure to act on the allocation.
Siddaramaiah also took issue with the central budget's lack of focus on crucial sectors in Karnataka.
He said that neither the urban development sector, be it housing schemes, rural infrastructure, nor highways, received any adequate funding. The budget remained a disappointment since it did not increase support to projects in Bengaluru and other urban areas, which were highly needed. For housing for the urban areas, the budget made provision for Rs 1.5 lakh crore, which according to the Chief Minister is nowhere near enough for the increasing demand.
Rural areas where basic infrastructure requires improvement received minuscule investments.
The Union budget allocated barely Rs 75,000 cr for rural developments, which needs Rs 3 lakh crore, according to all estimates.
Additionally, NREGS was allocated less as compared to last year, which stood at Rs 86,000 crore in contrast with last year's Rs 89,154 crore. In fact, the further reduction of funding reflects the turn of affairs in the government's attitude toward rural people welfare, according to Chief Minister's words.
Siddaramaiah also criticized the central government's initiatives like "Make in India" and "Startup India," stating that these programs were launched with grand announcements but received minimal funding. For example, only Rs 100 crore was allocated to "Make in India."
The Chief Minister concluded by stating that the government's focus on corporate interests and business-friendly policies has overshadowed the welfare of farmers, workers, youth, and women in Karnataka.