Bengaluru, March 6 (NationPress) In a significant development, Karnataka's Chief Minister Siddaramaiah unveiled the Budget for the fiscal year 2026-27 on Friday, marking his 17th presentation. The total budget outlay stands at Rs 4,48,004 crore, representing a 13.3% increase from the revised estimates of 2025-26.

Siddaramaiah emphasized that Karnataka is at the forefront of national development across various sectors. "We are among the top contributors to the country's tax revenue," he remarked.

While defending the state's guarantee schemes, he noted that these initiatives have greatly improved the economic conditions for millions of families and have raised the people's purchasing power.

However, CM Siddaramaiah directed criticism towards the Central Government, stating: "The cow that produces ample milk requires proper care. Bheeshma’s philosophy suggests that if it weakens, the entire cowherd suffers. We implore the Union Government to address the state's needs with sensitivity."

He further stressed that a diverse nation like India can only progress through a truly cooperative federal system. "Despite our relentless efforts for state development, the Union Government often treats us unfairly, overlooking the constitutional principles of cooperative federalism," he said.

"The decrease in the Central share of Centrally Sponsored Schemes, biased allocations in Central Sector schemes, injustices stemming from the Fifteenth Finance Commission’s revenue-sharing formula, the non-implementation of recommended special grants, and the hasty rationalization of GST rates have all added financial pressure on the state," the CM asserted.

He cautioned that the Union government's systematic weakening of the Mahatma Gandhi National Rural Employment Guarantee Scheme undermines the people's right to employment, placing additional financial burdens on state governments. "In these challenging times, it is crucial for all parties to unite and defend our state's interests," he remarked.

Siddaramaiah noted that Karnataka's economy achieved a robust real GSDP growth of 8.1% at constant prices for 2025-26, exceeding the national growth rate of 7.4% for the same period. This achievement is attributed to extensive sectoral growth, showcasing the state's diversified and stable economic pattern.

While several significant state economies, including Maharashtra, Gujarat, and Delhi, saw a decline in FDI inflows during this period, Karnataka experienced a remarkable increase of 2.6 times, highlighting its rising appeal as an investment hub, he claimed.

"Today, Karnataka stands as one of the most globally integrated state economies in India. Our leadership in sectors like Information Technology, biotechnology, aerospace, and advanced manufacturing has solidified our role as a key contributor to India’s exports and FDI inflows. Recent changes in tariff measures and evolving trade agreements with the United States and other major economies are pivotal for our state," he stated.

"Karnataka has a unique position in both national and international trade. Rapid advancements in Artificial Intelligence (AI) are reshaping global production systems. Innovations in science and technology are increasingly influencing our state's trajectory. With this backdrop, I present this budget with the foresight that we must transform 'fire into light,'" he said.

Upon taking office in 2023, our government prioritized economic security and social stability through the implementation of Guarantee Schemes inspired by the idea of Universal Basic Income. Various national and international studies indicate that these schemes have significantly uplifted the economic status of millions and improved purchasing power. We are heavily investing in welfare programs centered on the philosophy of Amartya Sen, which states that "economic growth neglecting human development investment is not only unstable but also unethical," he added.

The Chief Minister revealed that they are crafting a distinctive Karnataka model for robust and sustainable development. "Over 45 products from Karnataka have attained Geographical Indication (GI) status, which reflects the traditional creativity of our people and plays a significant role in job creation," he said.

"We are enhancing the administrative framework by filling vacant positions in key departments. Consistent with our election manifesto, employment generation remains a focus. This year, we are set to fill 56,432 posts. Acknowledging delays due to court cases in recruitment, we have granted a one-time relaxation of five years in the upper age limit," he emphasized.

"Along with recruiting for government roles, we are prioritizing infrastructure development, including roads, bridges, and public buildings. Beyond departmental allocations, we have initiated infrastructure projects worth Rs 8,600 crore under the Chief Minister’s Infrastructure Development Programme, launched last year. We will undertake Rs 4,000 crore worth of projects in the second phase of this initiative during the current year," CM Siddaramaiah concluded.