Karnataka politics in flux as CM Siddaramaiah begins pre-budget meetings

Chief Minister Siddaramaiah on Thursday kickstarted pre-budget consultations, reviewing the demands of 10 departments as he prepares to present his 17th budget amid mounting fiscal strain and political uncertainty over possible transfer of power.

All eyes are now on AICC president Mallikarjun Kharge after Congress leader Rahul Gandhi’s assurances that Siddaramaiah and Deputy Chief Minister D K Shivakumar would be “summoned” to Delhi for “talks”. The CM’s blunt reaction to the union budget reflected the pressure he faces. “We got no relief,” he said, hinting at expectations of central assistance.

Fiscal tightrope walk

The burden of flagship guarantee schemes – Rs 56,000 crore, along with impending gram panchayat, taluk and zilla panchayat elections - has sharply constrained fiscal space for the Congress government in the state.

The chief minister has repeatedly flagged cuts in central transfers, claiming Karnataka loses about Rs 20,000 crore annually due to GST rationalisation and suffered cumulative loss of Rs 1.25 lakh crore under 14th Finance Commission. 

Karnataka’s total liabilities are projected to touch Rs 7.64 lakh crore by end of 2025-26. 

As finance minister, Siddaramaiah has proposed gross borrowings of Rs 1.16 lakh crore to bridge a projected revenue deficit of Rs 19,262 crore, marking the third consecutive revenue-deficit budget.

The BJP has branded him the “biggest borrowing CM”, pointing to plans to raise Rs 93,000 crore in the last quarter alone. Politically, the churn is intensifying. The Shivakumar camp is gearing up, with reports of discreet meetings to consolidate numbers.

During the recent legislature session, the deputy CM asserted that his strength stood at “140 legislators (MLAs), including Siddaramaiah”, countering Opposition jibes about a divided Congress. 

Party MLA Shivaganga Basavaraj on Thursday urged the high command to end speculation.

“I would like to see Shivakumar become CM today. But the party should take a call,” he said. Signalling growing assertion by social blocs, over 20 SC/ST MLAs met at Home Minister G Parameshwara’s residence on Tuesday to discuss political representation and leadership roles.

Separately, Lingayat MLAs led by Industries Minister M B Patil held a meeting to underline their numerical strength, amid talk of leadership change or Cabinet reshuffle.

“We are 34 MLAs, the biggest bloc,” Patil said.