What Karnataka Gets from the Union Budget 2026; Details here
New Delhi: The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, has offered a mix of infrastructure proposals, sector-specific programmes and tax devolution for Karnataka.
On infrastructure, Bengaluru has emerged as a key hub in the country’s high-speed rail (HSR) network. The city will serve as a central junction for three of the seven proposed HSR corridors, Hyderabad–Bengaluru, Chennai–Bengaluru, and Pune–Hyderabad. This is expected to strengthen inter-city connectivity in the southern and western regions.
In the agriculture and allied sectors, the Union government announced a new dedicated programme focused on the cultivation and post-harvest processing of sandalwood, with Karnataka being the leading producer of sandalwood in the country,
Dedicated schemes were also announced for coconut, cashew and cocoa, with the aim of improving productivity and developing these crops as premium global brands by 2030. These initiatives are expected to benefit regions such as Tumakuru, Mangaluru, Udupi and Karwar.
For tourism, Coastal Karnataka has been selected for the development of ecologically sustainable “Turtle Trails” along key nesting sites, with the objective of promoting eco-tourism while ensuring environmental protection.
In the health sector, Mangaluru has been reportedly identified as a potential location for one of five proposed Regional Medical Hubs under a public-private partnership (PPP) model. The proposal seeks to leverage the city’s proximity to major pilgrimage centres such as Udupi and Dharmasthala.
According to the Deccan Herald, on fiscal transfers, the Union government will devolve ₹63,049.58 crore to Karnataka as its share in taxes and duties for the 2026–27 financial year. This is based on the 16th Finance Commission’s recommendation of a 4.13 per cent tax devolution share for the State. In comparison, Karnataka received ₹51,876 crore in the 2025–26 financial year.
However, the state government has objected to the devolution. Chief Minister Siddaramaiah stated that the 15th Finance Commission reduced Karnataka’s tax share by 23 per cent compared to the 14th Finance Commission. He said that earlier, out of every ₹100 distributed to States, Karnataka received ₹4.71, which was brought down to ₹3.64, resulting in a massive revenue loss.
The Chief Minister also pointed out that Karnataka contributes between ₹4.5 lakh crore and ₹5 lakh crore annually to the Centre in the form of taxes and cess, yet receives the lowest tax share and grants relative to its overall budget. He demanded that the earlier 4.71 per cent share be restored, stating that “true justice” would be done only if the State received more than that
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US rules out use of nuclear weapons against Iran
Washington DC: The White House has reportedly ruled out the use of nuclear weapons against Iran, even as uncertainty continues over ongoing peace negotiations and a deadline set by US President Donald Trump approaches.
Issues bout a possible escalation had increased after US Vice President JD Vance said that the United States has “tools in our toolkit that we so far haven’t decided to use” in dealing with Iran.
His remarks came amid rising tensions and ahead of a deadline linked to peace efforts.
The situation has attracted attention as Trump warned Iran that its “whole civilization will die tonight tonight” if an agreement is not reached by Tuesday at 8 pm.
This statement led to speculation about the possibility of extreme military measures, including a nuclear strike.
Following Vance’s comments, the White House issued a clarification distancing itself from such interpretations. In a post on X, it said, "Literally nothing @VP said here 'implies' this, you absolute buffoons." In a later statement, it added that “only the president knows” what action will be taken regarding Iran.
Literally nothing @VP said here "implies" this, you absolute buffoons https://t.co/7JU3wXMaWX
— Rapid Response 47 (@RapidResponse47) April 7, 2026
