Bengaluru: The finance portfolio could emerge as one of the most challenging responsibilities for chief minister-designate DK Shivakumar, if he decides to follow convention and handle the department himself. For nearly two decades, chief ministers have managed the finance portfolio in Karnataka. The only major exception came in 2006-07 when HD Kumaraswamy entrusted it to his coalition partner BS Yediyurappa in the JD(S)-BJP government.
Pressure on Shivakumar
Some senior functionaries, who support outgoing CM Siddaramaiah, are said to be pressing their claims for the portfolio. Shivakumar's decision on the issue assumes significance since he takes charge at a time when the state's finances are under immense pressure. He will also be stepping into the big shoes of Siddaramaiah, who presented a record 17 budgets and kept Karnataka within the Fiscal Responsibility and Budget Management Act limits — if only just — despite rising expenditure commitments.
Fiscal Situation
In the 2026-27 budget, the fiscal deficit was pegged at 2.9% of gross state domestic product, while liabilities stood at 24.9% of GSDP, both within permissible limits. The state's own revenue was projected at Rs 3.15 lakh crore against committed expenditure of nearly Rs 3.4 lakh crore, resulting in a deficit of about Rs 22,950 crore. Shivakumar will also have to ensure that Congress' guarantee schemes continue without disruption while finding room for his own welfare and development initiatives. Any major expansion in spending could further tighten the state's fiscal position.
Administrative Style
“Shivakumar has risen to the CM post purely on political strength, and although he has a wealth of administrative experience, he must understand the nuances of planned and unplanned financial impacts on the state,” said a bureaucrat. But Shivakumar's supporters argue that his strength lies in identifying capable people and delegating responsibilities. “He has the knack of picking the right people for tasks. Administratively, he will rely on experienced hands to get the job done,” said a Congress MP.
Expert Views
Narendar Pani, an economic analyst, said managing the finance portfolio requires a deeper understanding of how economic decisions influence growth and state finances. “Whoever takes charge of the finance portfolio needs to understand the connection between economic policies and financial growth of the state,” said Pani. “It is to be seen whether the new CM keeps the portfolio and has able personnel to assist him or hands it over to someone else in his cabinet.” That decision may offer an early glimpse into how Shivakumar plans to govern the state.
