From roads and metro expansion to housing and healthcare, the 2025-26 Karnataka Budget prioritises Bengaluru’s growth as a global metropolis.
Published Mar 07, 2025 | 5:26 PM ⚊ Updated Mar 07, 2025 | 5:38 PM
Synopsis: The Karnataka government’s 2025-26 budget sets out a comprehensive vision for Bengaluru’s transformation under the ‘Brand Bengaluru’ initiative, focusing on infrastructure, transport, housing, and sustainability to support the city’s rapid expansion. Key projects include a ₹40,000 crore investment in tunnel corridors, the extension of Namma Metro.
The Karnataka government has unveiled an ambitious budget aimed at transforming Bengaluru into a model global city under the continued ‘Brand Bengaluru’ initiative.
As the city continues to grow at an unprecedented rate, the 2025-26 budget lays out a comprehensive roadmap for the city’s transformation.
With an increased focus on urban infrastructure, housing, transport, and sustainability, the budget seeks to address the city’s rapid expansion and the mounting pressure on its services.
Bengaluru, as the state’s economic powerhouse, will see significant investments in key sectors, with a yearly grant allocation for city development rising from ₹3,000 crore to ₹7,000 crore.
To ensure these funds are effectively utilised, the government will establish a Special Purpose Vehicle (SPV) dedicated to executing large-scale infrastructure projects.
Meanwhile, the state continues to grapple with financial setbacks, as the Centre has not released the ₹11,495 crore in special grants recommended by the 15th Finance Commission, including ₹3,000 crore for lake development and another ₹3,000 crore for the Peripheral Ring Road project.
Addressing Bengaluru’s notorious traffic congestion, the government has announced a ₹40,000 crore investment in the North-South and East-West corridor tunnel projects.
This comes alongside plans to develop a 40.5 km double-decker flyover integrated with Namma Metro’s Phase 3, with a budget of ₹8,916 crore.
Additionally, 300 km of new roads will be constructed, whilst arterial and sub-arterial roads covering 460 km will be upgraded.
The much-delayed Peripheral Ring Road project has been rebranded as the ‘Bengaluru Business Corridor’ with a ₹27,000 crore allocation. Land acquisition is already underway, facilitated by funding from HUDCO Bank.
The suburban rail network, a crucial component of the city’s transit system, is progressing with two out of four corridors under construction.
The government has also pledged to double 70 km of railway tracks on the Baiyappanahalli-Hosur and Yeshwantpur-Channasandra routes at a cost of ₹812 crore.
Namma Metro, which currently serves 8.5 lakh commuters daily across its 79.65 km network, will see an additional 98.6 km of new routes over the next two years, with plans to extend the metro to Devanahalli.
Meanwhile, the Cauvery Stage-V project, completed at a cost of ₹5,550 crore, is now supplying water to 50 lakh residents in Bengaluru’s extended zones, with the next phase of expansion under discussion.
Major emphasis has been placed on housing development, with the Karnataka Housing Board set to develop over 16,140 plots under the Suryanagar Phase-IV scheme in Anekal Taluk.
Under the Chief Minister’s One Lakh Multi-storey Housing Scheme, the state will provide ₹121 crore in financial relief to over 12,000 beneficiaries.
Efforts to improve Bengaluru’s environmental sustainability are also underway. The government has earmarked ₹1,800 crore for 21 green projects under ‘Brand Bengaluru’, including ₹234 crore for the rejuvenation of Varthur and Bellandur lakes.
Additionally, ₹3,000 crore has been allocated to BBMP and BWSSB for stormwater drainage and flood mitigation efforts to combat climate change-related challenges.
To bolster Bengaluru’s innovation ecosystem, the government is setting up a second phase of the Quantum Research Park at the Indian Institute of Science (IISc) with a ₹48 crore grant.
A state-of-the-art EV cluster and international standard testing track will be developed at a cost of ₹25 crore to support electric vehicle manufacturing.
Furthermore, ₹57 crore has been sanctioned for reconstructing the Bengaluru Bio-Innovation Center, which suffered significant damage in a fire.
Healthcare infrastructure in Bengaluru is receiving a substantial boost, with a ₹150 crore investment in a new 200-bed hospital in Bengaluru North Taluk and the establishment of a mental health centre at the city’s Destitute Relief Centre.
The government has also constructed 14 critical care blocks across Karnataka, including a 100-bed facility in Bengaluru.
On the education front, the Bangalore City University will be renamed Dr Manmohan Singh Bengaluru City University. Government Arts College and RC College will be integrated as constituent colleges to elevate the university’s academic standards.
To assist students from backward classes in preparing for competitive exams such as the UPSC, two well-equipped hostels will be built in Bengaluru.
The state capital will also play host to the India Skills-2026 competition, helping prepare Karnataka’s workforce for global skill challenges.
Meanwhile, a state-of-the-art ‘Bengaluru Signature Park’ is set to come up in Devanahalli over 407 acres, with ₹50 crore already allocated for connectivity infrastructure.
(Edited by Dese Gowda)
