Overview On 5 February 2026 , Chief Minister Siddaramaiah , who also holds the Finance portfolio , inaugurated the preparatory phase of Karnataka’s 2026‑27 State Budget . He convened senior ministers from key departments – Environment & Forests, Home, Labour, Mines & Geology, Horticulture, and Tourism – to vet proposals for the upcoming fiscal plan. Simultaneously, Dalit legislators raised alarms over the utilisation of funds earmarked under the Scheduled Castes Sub‑Plan – Tribal Sub‑Plan (SCSP‑TSP) , prompting Home Minister G. Parameshwara to demand stricter compliance. Key Developments Development 1: The CM chaired inter‑departmental meetings to finalise budgetary allocations, with a special focus on the 172 backward taluks identified by the M. Govinda Rao Committee . Development 2: The Govinda Rao Committee’s recommendation of an additional ₹43,914 crore over five years (2026‑27 to 2031‑32) for infrastructure in these taluks is expected to be incorporated into the budget. Development 3: Dalit leaders – H.C. Mahadevappa, K.H. Muniyappa, and Shivaraj Tangadagi – expressed dissatisfaction with the diversion of SCSP‑TSP funds, leading Home Minister Parameshwara to stress that the next budget must prioritise education, health, hostels, industrial plots, and reservation in contracts for SC/ST communities. Important Facts Fact 1: The state earmarked ₹42,018 crore for SCSP‑TSP in the 2025‑26 fiscal year. Fact 2: A substantial share of Karnataka’s revenue is consistently allocated to welfare "guarantees" – a pattern expected to continue in the 2026‑27 budget. UPSC Relevance This development intersects with multiple sections of the UPSC syllabus. In GS Paper II (Governance) , it illustrates state‑level budget formulation, inter‑ministerial coordination, and the implementation challenges of targeted welfare schemes. GS Paper III (Economics & Development) benefits from the data on infrastructure financing, regional imbalance mitigation, and fiscal allocations to backward areas. The issue of SC/ST fund utilisation ties into GS Paper I (Indian Society) and the study of affirmative action, social justice, and the effectiveness of sub‑plan mechanisms. Potential question angles include: comparative analysis of sub‑plan implementation across states, evaluation of regional imbalance committees, and the impact of infrastructure spending on socio‑economic indicators. Way Forward Effective monitoring mechanisms must be instituted to ensure that the projected ₹43,914 crore reaches the identified taluks and that SCSP‑TSP allocations translate into tangible outcomes for marginalized communities. Strengthening audit trails, involving local self‑government bodies, and linking fund release to performance indicators can enhance accountability. The upcoming budget will be a litmus test for Karnataka’s commitment to balanced regional development and inclusive welfare.