Karnataka Budget 2026: Tightrope walk for Chief Minister Siddaramaiah

Karnataka's 2026 Budget poses challenges for CM Siddaramaiah, balancing welfare spending with fiscal sustainability amid political speculation.

As the Congress government in Karnataka gears up to present the 2026–27 Budget on Friday, it faces a tightrope walk between containing revenue deficit and funding its guarantee schemes, amid speculation over a possible change of Chief Minister after the Budget Session.

Chief Minister Siddaramaiah, who also holds the Finance portfolio, presents his 17th Budget on Friday.

Mr. Siddaramaiah, who recently became the longest-serving Chief Minister of Karnataka by surpassing the record held by D. Devaraj Urs, has asserted that spending on the guarantee schemes has been a driving force behind women’s financial autonomy and gender equality — one of the United Nations’ Sustainable Development Goals.

A whopping ₹1.2 lakh crore has been spent on these guarantees since their inception up to the end of January, 2026.

The Bharatiya Janata Party and the Janata Dal (Secular) have accused the government of using welfare schemes to divert attention from its alleged failure to develop infrastructure and irrigation projects, thereby causing a financial strain.

They have also alleged that taxes and prices of essential commodities and services have been raised multiple times to fund these guarantees and safeguard Mr. Siddaramaiah’s position. The Supreme Court recently chastised State governments for distributing “freebies” indiscriminately without distinguishing between the haves and the have-nots.