Budget is ‘a filled pot, not empty’: CM counters Oppn

Bengaluru: Chief Minister Siddaramaiah on Tuesday strongly defended his government’s Budget in the Legislative Assembly, asserting that it is “a filled pot, not an empty one,” while dismissing Opposition criticism as superficial and aimed at social media attention.

Replying to the debate on the Budget, the Chief Minister said a total of 50 members participated in the discussion, which lasted 24 hours and 45 minutes — the first time such extensive deliberation has taken place. “This is my 17th Budget and never before have so many members spoken on it. I thank all those who participated, whether they criticised or supported it,” he said.

Taking a dig at the Opposition, Siddaramaiah said their leaders had not undertaken an in-depth study of the Budget. “They have used rhetoric to create content for social media rather than engaging in serious analysis,” he remarked. Using a metaphor, he added, “However much the Opposition criticises, a mango cannot become a neem fruit. This is not an empty pot, but a filled one.”

The Chief Minister also highlighted positive feedback from editorials and economists, who described the Budget as inclusive, growth-oriented, and focused on irrigation, infrastructure, employment, education, healthcare, and social security. He said the Budget aims to balance welfare with fiscal responsibility while promoting investments and startups.

Strong growth and fiscal discipline

Siddaramaiah said the State Budget size for 2026–27 stands at Rs4.48 lakh crore, compared to Rs4.09 lakh crore in 2025–26 — an increase of Rs38,455 crore, reflecting a growth of 9.4 per cent. He pointed out that this growth rate surpasses that of the Union Budget, which grew by 5.6 per cent.

He further noted that Karnataka’s Gross State Domestic Product (GSDP) is expected to grow at 8.1 per cent, higher than the national GDP growth rate of 7.4 per cent, indicating strong economic momentum driven by capital investments.

Despite the expansion, the government has maintained fiscal discipline, he said. The fiscal deficit is projected at 2.95 per cent of GSDP, within the 3 per cent limit, while total liabilities stand at 24.94 per cent — below the 25 per cent threshold mandated under fiscal responsibility norms.

Centre’s policies impact state finances

The Chief Minister attributed revenue challenges to policy decisions by the Centre, including GST rate revisions and discontinuation of compensation. He said GST rationalisation reduced the State’s monthly revenue growth from 10 per cent to around 4 per cent, leading to an estimated shortfall of Rs10,000 crore in 2025–26 and Rs15,000 crore in 2026–27.

He also pointed out that Karnataka’s share in central taxes declined from 4.713 per cent (14th Finance Commission) to 3.647 per cent (15th Finance Commission), though it has been marginally revised to 4.131 per cent under the 16th Finance Commission recommendations. According to him, the State has suffered losses exceeding Rs2 lakh crore due to reduced devolution, GST compensation issues, and cess and surcharge mechanisms that exclude States from revenue sharing.

Welfare and social justice focus

Reiterating his government’s commitment to welfare, Siddaramaiah said the Budget prioritises empowerment of women, farmers, labourers, backward classes, and marginalised communities. He invoked B. R. Ambedkar, stating that true freedom can only be achieved when social and economic equality is ensured.

He also countered Opposition claims regarding revenue deficit, noting that fiscal deficits have been a consistent feature across governments. “Even during the BJP’s tenure, deficits existed. Surplus budgets were possible only due to GST compensation released at once,” he said.

Comparative fiscal position

The Chief Minister emphasised that Karnataka’s fiscal deficit remains lower than several other States, including Andhra Pradesh (4.5 per cent), Kerala (3.8 per cent), and Tamil Nadu (3.5 per cent). He added that revenue deficits are a common issue across States and even at the Union level. Despite financial constraints, he said the State continues to mobilise strong revenue, with collections expected to rise to Rs3.15 lakh crore from Rs2.92 lakh crore last year. Concluding his reply, Siddaramaiah asserted that the Budget adheres to fiscal responsibility norms while addressing developmental and welfare priorities.