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flag Karnataka criticizes Union Budget 2026 for unfunded schemes and unpaid dues, citing threats to federalism and fiscal stability.

flag Karnataka Minister MC Sudhakar criticized the Union Budget 2026, accusing the central government of undermining cooperative federalism by launching new schemes without ensuring funding, leaving states like Karnataka with unpaid dues, particularly under the Jal Jeevan Mission. flag He questioned the government's claim of building 'Viksit Bharat,' citing ongoing financial strain on states due to unmet reimbursement commitments. flag Meanwhile, the Economic Survey 2025-26 warned of rising fiscal risks from unchecked state spending, especially on unconditional cash transfers that now total ₹1.7 lakh crore, crowding out essential capital investment and threatening long-term growth.

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