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Karnataka seeks Union budget protections due to falling GST revenues and rising costs.
Karnataka has asked the Union Government to protect its revenues in the 2026-27 budget, demanding a compensation mechanism similar to the GST Compensation Cess, a 50:50 share of tobacco and pan masala excise duties, and release of pending funds for the Jal Jeevan Mission and Upper Bhadra Project.
The state cited declining GST revenues, rising climate and social costs, and fiscal strain from shifting MGNREGA to an allocation-based model.
It also requested expanded crop price support, higher frontline health worker honorariums, and increased central funding for agriculture, rural employment, and social protection programs.
The Union Budget is set for February 1.
Karnataka busca protecciones presupuestarias de la Unión debido a la caída de los ingresos del GST y al aumento de los costos.