Union Budget 2026: No benefit for Karnataka, says Deputy CM D.K. Shivakumar

Karnataka's Deputy CM D.K. Shivakumar criticizes Union Budget 2026, stating no benefits for the state and urging MGNREGA restoration.

Karnataka Deputy Chief Minister D.K. Shivakumar on Sunday (February 1, 2026) said that there was no benefit for the State from the Union Budget 2026 presented by Finance Minister Nirmala Sitharaman in the Parliament. He, however, said that he is yet to go through the budget in detail.

“There is no benefit for our State from the central budget. I was observing it. They have named a programme after Mahatma Gandhi now (after repealing the MGNREGA act that was named after Gandhi),” Shivakumar said.

Speaking to reporters here, he demanded that the MGNREGA be restored, as he also made it clear that the new rural employment legislation — VB-G RAM G — that has been enacted with a 60:40 percent fund sharing formula between the Centre and State governments, cannot be implemented. “I don't see any major share for our State from this budget,” he added.

Stating that there were expectations for Bengaluru from the central budget, Shivakumar, who is also the Minister in-charge of the city's development, said that Prime Minister Narendra Modi had called it a “global city”, “but what has the central government done for it.” He further pointed out at the troubles that sugar factories, especially those from the cooperative sector, face, due to alleged lack of decisions or measures by the central government to help them.

The Centre has the right to fix MSP for the farmers' produce. “They will have to take necessary measures to help the farmers,” Shivakumar added.