Karnataka CM Siddaramaiah Criticizes Union Budget, Accuses Sitharaman of Neglecting State

Karnataka Chief Minister Siddaramaiah has criticized Union Finance Minister Nirmala Sitharaman over the Union Budget, accusing her of lying about dues owed to the state. He questioned the lack of grants for state-specific projects and claimed industries are leaving Karnataka due to central policies.

Karnataka Chief Minister Siddaramaiah has leveled sharp criticisms at Union Finance Minister Nirmala Sitharaman regarding the recently presented Union Budget. He accused Sitharaman of lying about the Centre owing no dues to Karnataka and questioned the absence of a grant for the Upper Bhadra Project in the budget.

During a pre-budget meeting, Siddaramaiah said the state had requested Rs 5,300 crore for the Upper Bhadra Project. He also highlighted that the 15th Finance Commission recommended Rs 5,495 crore in special grants for Karnataka, which were not included in the budget. Similarly, funds for the Peripheral Ring Road and water bodies development were missing, he added.

Siddaramaiah expressed disappointment that despite Sitharaman being a Rajya Sabha member from Karnataka and HD Kumaraswamy, a Union Minister, the budget lacked significant allocations for the state. He also noted the absence of mentions for an AIIMS in Raichur and an IIT in Mysuru or Hassan, which were earlier demanded by Karnataka.

Siddaramaiah accused Sitharaman of misrepresenting the financial support given to Karnataka, citing that industries are fleeing the state due to her policies. Despite Karnataka being the second-highest tax contributor, Siddaramaiah questioned the state's continued contributions and justified Karnataka boycotting the NITI Aayog meeting. He pointed out that other non-BJP-ruled states also abstained, with Mamata Banerjee walking out due to lack of speaking time.

Earlier, Sitharaman had defended the central government's financial allocations to Karnataka, noting that central transfers to the state have substantially increased under Prime Minister Narendra Modi's government. She outlined that from 2004-2014 Karnataka received Rs 81,791 crore, compared to Rs 2,95,818 crore from 2014-2024. For the fiscal year 2024-25, Rs 45,485 crore has been budgeted as tax devolution for Karnataka.

Sitharaman also criticized the Congress-led state government for failing to control inflation, which remains above the national average. She emphasized significant increases in grants and aid to Karnataka under the current regime as opposed to the previous administration.

(With inputs from agencies.)