New Delhi [India], January 11 (ANI): The Karnataka authorities has known as on the Union Government, within the forthcoming Union Budget 2026-27, to make sure income safety for States post-GST rationalisation, share excise responsibility and cess on pan masala and tobacco merchandise, launch pending Central dues beneath flagship schemes such because the Jal Jeevan Mission, and strengthen funding for rural employment, agriculture, and social safety.
The State authorities made these calls for in the course of the pre-Budget consultations chaired by Union Finance Minister Nirmala Sitharaman in New Delhi on Saturday.
Karnataka’s Revenue Minister Krishna Byre Gowda represented his state on the assembly with the Union finance minister.
As is the conference, the Budget for 2026-27 will likely be offered on February 1.
Presenting the State’s views, the Karnataka Minister highlighted that whereas it stays a serious contributor to nationwide financial development, its fiscal area has considerably narrowed attributable to GST price rationalisation, rising social sector commitments, climate-related shocks, and speedy urbanisation. The State underlined that tasks of States have expanded quicker than their income base.
Karnataka flagged a pointy slowdown in GST income development following price rationalization in 2025, leading to a income shortfall. The State sought a income safety and compensation mechanism for States, akin to the sooner GST Compensation Cess.
It additionally demanded a 50:50 sharing of excise responsibility on tobacco merchandise and cess on pan masala, arguing that States bear the well being and enforcement prices whereas the proceeds stay outdoors the divisible pool.
On the Jal Jeevan Mission, Karnataka identified that it has launched Rs 24,598 crore in opposition to a Central launch of Rs 11,786 crore, together with advances to stop disruption of works, and sought pressing launch of the pending Central share
Raising considerations over rural employment, Karnataka sought reconsideration of the shift from the demand-driven MGNREGA to the allocation-based G-RAM-G scheme, noting that it has lowered efficient employment days and imposed a further fiscal burden on the State.
In agriculture, Karnataka proposed the implementation of a Price Deficiency Payment Scheme beneath PM-AASHA for eight crops, maize, soybean, mango, chilli, onion, tomato, turmeric, and ginger, and sought a further allocation for 2026-27.
The State additionally demanded an upward revision within the Central contribution for frontline employees, looking for month-to-month honorariums of Rs 8,000 for Anganwadi and ASHA employees and Rs 5,000 for cooks and helpers. It additional known as for enlargement of protection and enhancement of pension quantities beneath the National Social Assistance Programme.
Karnataka reiterated its request to declare the Upper Bhadra Project as a National Project and sought launch of Rs 5,300 crore in Central help as introduced earlier.
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Saturday chaired the assembly on pre-Budget session with States and Union Territories (with Legislature) for the forthcoming Union Budget 2026-27. (ANI)