UnionBudget – Budget 2026–27 Signals Major Push for Bengaluru Infrastructure
UnionBudget – The Union Budget for 2026–27 has sparked a fresh political debate in Karnataka, with the Opposition and the ruling parties offering sharply different readings of what the allocations mean for the state, particularly for Bengaluru’s long-term growth and urban mobility.
R Ashoka, the Leader of Opposition in the Karnataka Assembly, on Monday dismissed claims that the state had been sidelined in the latest Union Budget. He said the financial plan clearly reflects strong central support for Bengaluru’s infrastructure, public transport, and quality of life improvements.
Significant Allocations for Urban Transport and Mobility
According to Ashoka, the budget sets aside substantial funds aimed at transforming how Bengaluru moves. He highlighted that more than Rs 2,000 crore has been earmarked for the Namma Metro project, while the Suburban Rail Project will receive Rs 500 crore. In addition, Rs 1,500 crore has been allocated under the PM E-Drive initiative, along with Rs 500 crore for the PM eBus Sewa scheme.
He said these investments collectively point to a major upgrade in the city’s transport ecosystem. The focus, he noted, is not only on expanding capacity but also on promoting cleaner and more sustainable mobility options across the metropolitan region.
Impact on Traffic, Environment, and Daily Life
Ashoka argued that the scale of funding will help ease Bengaluru’s persistent traffic congestion, strengthen last-mile connectivity, and reduce pollution levels. He added that improved public transport would directly benefit residents by cutting commute times and enhancing overall urban livability.
Describing the allocations as outcome-driven, he said the emphasis on mass transit and electric mobility reflects long-term planning rather than short-term political considerations. In his view, the budget balances fiscal discipline with citizen-focused development priorities.
Karnataka’s Higher Share in Central Tax Devolution
Addressing concerns raised by the state government over alleged discrimination, Ashoka pointed to changes under the 16th Finance Commission. He said Karnataka’s share in central tax devolution has been increased from 3.65 percent to 4.13 percent for the 2026–31 period.
In financial terms, he explained, the state received Rs 55,663 crore under the previous Finance Commission framework. Under the new formula, the allocation is expected to rise to Rs 63,050 crore, translating into an additional Rs 7,387 crore. Ashoka described this as the highest net gain among all states.
Political Clash Over Centre–State Relations
Ashoka criticised the Congress-led government in Karnataka for what he called a narrative of constant grievance against the Centre. He questioned how the state could claim neglect when its share of central funds has risen significantly.
He said the increased allocation demonstrates a commitment to cooperative federalism and development-led governance. According to him, the figures reflect sustained advocacy for Karnataka and continued investment in its economic potential.
Questions on Utilisation of Funds
While welcoming the higher devolution, Ashoka raised concerns about how the state government would deploy the funds. He asked whether the additional Rs 63,050 crore would be directed toward infrastructure, irrigation, agriculture, employment generation, and economic growth, or diverted toward populist schemes.
He stressed that effective utilisation would be crucial in determining whether the budgetary gains translate into visible improvements on the ground.
Chief Minister’s Strong Criticism of the Budget
Earlier, Karnataka Chief Minister Siddaramaiah had strongly criticised the Union Budget for 2026–27. He described it as the most disappointing budget of his political career and compared it unfavourably to a municipal corporation budget.
The Chief Minister said Karnataka had received little of value and claimed that southern states, in general, were overlooked. His remarks added to the ongoing political friction between the state and the Centre over fiscal priorities and regional balance.
As reactions continue to unfold, the debate now centres not only on allocations but also on execution, accountability, and the long-term impact of the budget on Karnataka’s development trajectory.