<h1>Karnataka seeks Budget 2026-27 GST loss compensation, tobacco excise share, rural jobs funding, and faster grant releases; fiscal relief urged</h1> Karnataka requested Union Budget 2026-27 measures to restore state fiscal capacity, including revenue protection for GST rate rationalisation losses through a compensation mechanism akin to the GST Compensation Cess, and 50:50 devolution to states of tobacco excise and pan masala cess, to offset asserted GST shortfalls. It sought reversal of the allocation-based VB-G RAM G model and restoration of demand-driven rural employment with adequate uncapped central funding, to maintain livelihood-security person-days without fiscally unsustainable state outlays. It requested time-bound release and reimbursement of pending central shares under JJM and Finance Commission grants/disaster relief to prevent project disruption and ease cash-flow stress, and additional allocations for a PDPS under PM-AASHA and higher central honoraria/pension coverage to meet expanded welfare commitments.