Archive · 2 Sep 2026
Shivakumar Seeks NITI Aayog Funds, Backs Second Bengaluru Plan
Karnataka Chief Minister D K Shivakumar asked NITI Aayog to help the state receive the money it says it is owed.
He also asked for support for Karnataka’s development projects.
NITI Aayog said Karnataka should consider building a second Bengaluru.
This could help reduce overcrowding and pressure on the existing city.
Shivakumar said Karnataka contributes strongly to India’s economy and technology sectors.
He argued that southern states should not be treated unfairly when money is divided using population figures.
Karnataka also wants to improve farming in dry areas.
The state described plans for welfare, schools, tourism, investors and easier access to government services.
Karnataka Chief Minister D K Shivakumar sought NITI Aayog’s help securing the state’s due funds and Union Budget grants.
NITI Aayog Vice Chairman Ashok Kumar Lahiri supported considering a second Bengaluru to reduce pressure on the city.
Shivakumar argued that southern states should not lose funding because allocations are based primarily on population.
He highlighted Karnataka’s economic performance, including a reported 2025-26 GSDP of Rs 32.81 lakh crore and 8.1 per cent growth.
The state presented initiatives involving welfare guarantees, infrastructure, agriculture, education, tourism, land records and foreign investment.
- Who
- Karnataka Chief Minister D K Shivakumar, NITI Aayog Vice Chairman Ashok Kumar Lahiri and Karnataka government officials.
- What
- Shivakumar sought NITI Aayog’s intervention on Karnataka’s funding and backed a plan to develop a second Bengaluru.
- When
- September 2; the report also cites Karnataka’s 2025-26 economic figures.
- Where
- At Shivakumar’s official residence in Bengaluru, Karnataka.
- Why
- To secure state funds and support development projects, while reducing pressure on Bengaluru and expanding growth across Karnataka.
Karnataka’s Position
Funding Allocation Perspective
State funding
Karnataka’s Position
Shivakumar asked NITI Aayog to ensure Karnataka receives its due share of funds, including grants announced in the Union Budget.
Funding Allocation Perspective
The report does not provide a direct response from the Union government or NITI Aayog on Karnataka’s specific funding request.
Population-based allocations
Karnataka’s Position
Shivakumar argued that southern states should not be penalised in fund allocations because they implemented population-control measures more effectively.
Funding Allocation Perspective
The report does not state an opposing justification for using population-based allocation criteria.
Second Bengaluru
Karnataka’s Position
Shivakumar backed preparing a detailed plan for a second Bengaluru and said other states’ approaches would be considered.
Funding Allocation Perspective
Ashok Kumar Lahiri said the proposal should be seriously considered to reduce pressure on Bengaluru, but the report does not identify a specific alternative position.
- Reported GSDP
- Karnataka’s Gross State Domestic Product was Rs 32.81 lakh crore in 2025-26.
- Reported growth
- The state’s reported GSDP growth rate was 8.1 per cent.
- Sector composition
- Services accounted for 70 per cent of GSDP, industry 19 per cent and agriculture 11 per cent.
- Five guarantee schemes
- The state said it spends more than Rs 50,000 crore annually on the schemes.
- Farmer electricity subsidies
- Karnataka said it spends around Rs 20,000 crore annually on electricity subsidies for farmers.
- Workforce figures
- Shivakumar said Karnataka produces 1.6 lakh engineers and about 13,000 doctors each year.
- Bengaluru IT workforce
- Shivakumar said Bengaluru has 26 lakh IT professionals.