Siddaramaiah Presents Karnataka Budget For Record 17th Time

Chief Minister Siddaramaiah on Friday presented his record 17th State Budget, outlining a Rs 4.48 lakh crore spending plan for the financial year 2026-27, while the state continues to face a revenue deficit for the third consecutive year.

The budget estimates total revenue receipts at Rs 3,15,050 crore, comprising the state's own tax revenue of Rs 2,20,000 crore, non-tax revenue of Rs 16,000 crore, and Rs 79,050 crore in transfers from the Government of India.

Including gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs 190 crore, the total receipts for 2026-27 are projected at Rs 4,47,240 crore.

The total expenditure for the year is estimated at Rs 4,48,004 crore, which includes:

• Revenue expenditure: Rs 3,38,007 crore
• Capital expenditure: Rs 74,682 crore
• Loan repayments: Rs 35,316 crore

The government has projected a revenue deficit of Rs 22,957 crore and a fiscal deficit of Rs 97,449 crore, which amounts to 2.95 per cent of the Gross State Domestic Product (GSDP).

 Total liabilities by the end of the year are estimated to reach Rs 8,24,389 crore, accounting for 24.94 per cent of GSDP. 

The government said both figures remain within the limits set under the Karnataka Fiscal Responsibility Act, indicating continued adherence to fiscal discipline.

Key Announcements

A revised Detailed Project Report (DPR) for the Mekedatu Dam Project will soon be submitted to the Government of India along with a proposal for forest clearance. The project, intended to supply drinking water to Bengaluru, has faced strong opposition from Tamil Nadu in the past.

The government also announced plans to enact the Rohith Vemula Act to prevent caste-based discrimination and atrocities against students across government, private and deemed universities in the state.

Welfare And Infrastructure Initiatives

Under tribal welfare initiatives, the government will construct the Sri Maharshi Valmiki Administrative Soudha at Sumanahalli in Bengaluru at a cost of Rs 50 crore to house offices under the Scheduled Tribes Welfare Department.

Waqf properties located in prime commercial areas will be developed under a Public-Private Partnership (PPP) model to unlock their economic potential.

For Bengaluru's infrastructure, the government announced Rs 1,255 crore for ward-level road and infrastructure development across five city corporations.

The state will also establish 100 Miyawaki urban forests, using dense plantation of native species to create green spaces in urban areas.

Technology And Innovation Push

To boost investment and improve ease of doing business, the state has launched a unified investment portal developed with the support of Microsoft, offering more than 100 services across 30 departments for investors.

The Indian Institute of Science will host the Bangalore Robotics and AI Innovation Zone (BRAIN) under the ARTPARK, in collaboration with Indian Space Research Organisation and Karnataka State Electronics Development Corporation Limited.

A drone testing and performance evaluation facility will also be set up in Chikkaballapur to support the growing drone ecosystem.

Expanding Tech Beyond Bengaluru

Mysuru will be developed as the second IT hub of Karnataka to reduce congestion in Bengaluru.