Chief Minister Siddaramaiah on Friday presented his 17th State Budget, the highest number delivered by any Karnataka chief minister, outlining a Rs 4.48 lakh crore spending plan for the financial year 2026–27.
The budget indicates that the state will continue to run a revenue deficit for the third consecutive year, even as the government focuses on welfare programmes, infrastructure development and technology investments.
According to the budget estimates, total revenue receipts are projected at Rs3,15,050 crore. This includes Rs 2,20,000 crore from the state’s own tax revenue, Rs16,000 crore from non-tax revenue, and Rs79,050 crore in transfers from the Government of India.
The government has also projected gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs190 crore, taking total receipts to Rs 4,47,240 crore for the fiscal year.
Meanwhile, overall expenditure is estimated at Rs 4,48,004 crore, divided into Rs 3,38,007 crore in revenue expenditure, Rs 74,682 crore in capital expenditure, and Rs 35,316 crore towards loan repayments.
The state has projected a revenue deficit of Rs 22,957 crore, while the fiscal deficit is estimated at Rs97,449 crore, which equals 2.95% of the Gross State Domestic Product (GSDP).
Total liabilities by the end of the year are expected to reach Rs 8,24,389 crore, accounting for 24.94% of the state’s GSDP. The government said both deficit levels remain within limits set under the Karnataka Fiscal Responsibility Act, indicating adherence to fiscal discipline.
Mekedatu project and student protection law
The government said a revised Detailed Project Report for the Mekedatu Dam Project will soon be submitted to the Centre along with a request for forest clearance. The project is intended to improve drinking water supply for Bengaluru but has faced opposition from Tamil Nadu in the past.
Another major announcement was the proposed Rohith Vemula Act, which aims to prevent caste-based discrimination and atrocities against students in government, private and deemed universities across the state.
Welfare and infrastructure focus
Under tribal welfare initiatives, the government will construct the Sri Maharshi Valmiki Administrative Soudha in Bengaluru’s Sumanahalli at an estimated cost of Rs 50 crore. The building will house offices of the Scheduled Tribes Welfare Department.
The budget also proposed the development of Waqf properties located in prime commercial areas through a Public-Private Partnership model, aiming to unlock their economic potential.
For urban infrastructure, Rs 1,255 crore has been allocated for ward-level road and infrastructure projects across five city corporations in Bengaluru.
The government also plans to develop 100 Miyawaki urban forests, which use dense plantations of native species to create green spaces in urban areas.
Push for technology and innovation
To encourage investment and improve ease of doing business, the state launched a unified investment portal developed with the support of Microsoft, providing 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 ARTPARK in collaboration with the Indian Space Research Organisation and Karnataka State Electronics Development Corporation Limited.
Additionally, a drone testing and performance evaluation facility will be established in Chikkaballapur to support the state’s growing drone technology ecosystem.
Mysuru to be developed as second IT hub
The government also announced plans to develop Mysuru as Karnataka’s second IT hub, aiming to reduce congestion in Bengaluru while promoting technology-driven growth in other regions of the state.