Published Mar 06, 2026 | 10:10 AM ⚊ Updated Mar 06, 2026 | 1:56 PM
Chief Minister Siddaramaiah presenting the 2026-27 state budget.
Karnataka Chief Minister Siddaramaiah presented the state’s budget for 2026–27 in the Legislative Assembly on Friday, 6 March. The budget focused on providing thrust to welfare schemes and infrastructure development in Bengaluru and backward regions.
This is the 17th Budget of Siddaramaiah, who also holds the Finance portfolio, and the fourth in his second term as the chief minister.
For 2026–27, total revenue receipts are estimated at ₹3,15,050 crore, comprising the State’s own tax revenue of ₹2,20,000 crore, non-tax revenue of ₹16,000 crore, and receipts from the Government of India of ₹79,050 crore.
A Mid-Year Review on State Finances 2025–26, tabled during the Legislative Assembly session in Belagavi, said the increase in committed expenditure, including spending on guarantees and various welfare schemes, has raised revenue expenditure.
In a statement to the media, Siddaramaiah recently said the state’s total liabilities by the end of March 2026 are projected at ₹7,64,655 crore, as per the 2025–26 Budget Estimates, which is 24.91 percent of the Gross State Domestic Product (GSDP).
For 2026–27, total revenue receipts are estimated at ₹3,15,050 crore, comprising the state’s own tax revenue of ₹2,20,000 crore, non-tax revenue of ₹16,000 crore, and receipts from the Government of India of ₹79,050 crore.
Total expenditure for 2026–27 is estimated at ₹4,48,004 crore. This includes revenue expenditure of ₹3,38,007 crore, capital expenditure of ₹74,682 crore, and loan repayment of ₹35,316 crore.
For 2026–27, the revenue deficit is estimated at ₹22,957 crore. The fiscal deficit is estimated at ₹97,449 crore, which is 2.95 percent of GSDP, and total liabilities at the end of the year are estimated at ₹8,24,389 crore, amounting to 24.94 percent of GSDP.
An Alcohol-in-Beverage (AIB) based excise duty structure will be introduced from April 2026. There will be a uniform level of ED, whereas AED will be levied within a defined range based on an ex-factory price slab basis.
The system of levying uniform excise duty based on the alcohol content per litre will be introduced in stages in the next three to four years.
The revenue collection target from State Excise for the financial year 2026–27 is ₹45,000 crore.
It has been proposed to reduce the Sales Tax on environmentally friendly Liquefied Natural Gas (LNG) from 14.34 percent to five percent to promote its use in the industrial and transport sectors.
The revenue target for commercial tax for the financial year 2026–27 is ₹1,25,000 crore.
All laws enacted by the Government will be prepared in Kannada. Further, all existing Central laws till now will be translated into Kannada.
An allocation of ₹5,300 crore has been provided for the implementation of the Shakti scheme in 2026–27.
An integrated digital platform will be developed at a cost of ₹25 crore to effectively manage traffic congestion in the growing city of Bengaluru. The platform will collect and analyse data managed separately by various traffic management agencies.
Under ‘Operation Parishuddikarana,’ sophisticated security inspection equipment, including Artificial Intrusion Detection System, CCTV, and Body-worn Cameras, will be provided at a cost of ₹20 crore to prevent the use of mobiles, marijuana, other prohibited items, and illegal activities in all prisons.
‘Mahatma Gandhi Jan Shishkana Kendra’ project will be formulated and implemented to disseminate the ideologies of Father of the Nation, to increase the awareness among the youth and to revitalise district Gandhi Bhavans.
Gandhi Memorial Pillars will be constructed at various locations across the State visited by Mahatma Gandhi to commemorate his legacy.
Disaster management programmes will be taken up under Karnataka Water Security and Resilience Programme (KWSRP) in a 5-year period at a cost of ₹5000 crore to control flooding in Bengaluru city.
During 2026-27, an amount of ₹1,162 crore will be earmarked for disaster relief measures. The state had earlier insisted on enhanced disaster relief grants from 16th Finance Commission, considering the impact of climate change. Though the Commission has accepted all recommendations of the state, the state's share in overall disaster relief grants has witnessed only an incremental increase from 3.56 percent given by 15th Finance Commission to 4.12 percent.
A memorial will be built in the name of the renowned environmental activist, late Salumarada Thimmakka, near Hulikal-Kudur, the chief minister announced.
Under the 'Karnataka Man-Animal Conflict Mitigation Programme’, an allocation of ₹269 crore has been reserved in the current year, Siddaramaiah said.
A Leopard Rehabilitation Centre will be established in Bannerghatta for rehabilitating leopards captured from the residential areas on the outskirts of the city, at a cost of ₹5 crore.
Diploma courses will be started in selected universities to provide soft skill training to the tourist guides, the chief minister said. ₹1 crore will be spent to train tourist guides, taxi drivers, auto drivers and security police staff.
A ropeway will be constructed in PPP mode, connecting tourist locations of Mullayangiri, Seethalayyagiri and Kaimara in Chikmagalur district to develop the tourism sector in the region.
To promote Kannada and culture, different art forms such as Rangabhoomi, Lalitha kale, Chitra kale, Shilpakale, etc., will be organised every year at a cost of ₹5 crores, in collaboration with ‘Bengaluru Habba’, Siddaramaiah said.
AI and Robotics Technology Park (ART-PARK) under IISC, will set up a robotics and AI campus called “Bangalore Robotics and AI Innovation Zone” (BRAINz) in collaboration with ISRO and Keonics.
Regarding the Union government’s FRP rate of ₹3,550 per metric ton of sugarcane at 10.25 percent sugar yield for the 2025-26 sugarcane crushing season, Siddaramaiah said that this rate has been fixed unscientifically.
To safeguard the interests of the farmers, an additional ₹50 per metric ton of sugarcane has been provided by the state to the farmers. The total amount released for this purpose in 2025-26 is ₹300 crores.
Siddaramaiah said a second airport will be developed in Bengaluru in a bid to decongest Kempegowda International Airport, which has emerged as the country's third-largest airport. A feasibility report will be prepared after obtaining technical advice from the Airports Authority of India (AAI), he added.
Siddaramaiah said that during the last three years, ₹28,000 crore has been spent on the Gruha Jyothi scheme, adding that ₹10,578 crore has been allocated for the current year.
Siddaramaiah said a new Revised Master Plan-2041 (RMP) for Bengaluru will be implemented by the end of 2027.
"Additionally, a Comprehensive Mobility Plan (CMP) will be prepared within six months. A total of 41 km of additional metro lines is proposed to be completed during the financial year 2026-27. A Tunnel Road and an Elevated Road from Hebbal Junction to Mekhri Circle will be constructed by the BDA at a cost of ₹2,250 crore," he said.
Under MGNREGA, approximately 182 crore person-days of employment have been generated in the state, Siddaramaiah said.
"A total of ₹61,000 crore in wage payments has been made, and approximately 77 lakh assets have been created. In the current year alone, nearly 71 lakh rural households have benefited from this scheme. Abolition of the scheme represents a dilution of the rights-based approach that formed the core principle of NREGA and is against the Gram Swaraj concept of Mahatma Gandhi," he said.
"The Karnataka government remains committed to pursuing all appropriate recourse, including legal measures, to safeguard the rights of rural workers and uphold the principles of decentralised governance," he added.
He said all gram panchayats in the state will be named “Mahatma Gandhi Gram Panchayats” to immortalise the name of "Father of the Nation", Mahatma Gandhi.
The chief minister said that under the Jal Jeevan Mission scheme, works worth ₹69,488 crore have been approved.
"Within this, the Union government's share is ₹30,888 crore, and the state government’s share is ₹38,600 crore. Out of this, only ₹11,786 crore has been released by the Government of India so far, and ₹19,102 crore has yet to be released," he said.
For the year 2026-27, an amount of ₹10,433 crore has been earmarked for this scheme.
Siddaramaiah announced that screening for breast and cervical cancers and a vaccination programme for the prevention of cervical cancer will be conducted in Bengaluru as a pilot project.
Under the Anna Bhagya scheme for the year 2026-27, instead of the additional 5 kg of rice being currently provided, the Indira Food Kit, containing nutritious items such as tur dal, sugar, salt, and cooking oil, will be distributed every month.
For 2026-27, Rs 6,200 crore will be allocated for this purpose.
Siddaramaiah said that during the current year, a target has been set to complete three lakh houses.
In the name of ‘KHB Surya Kreeda Grama’, an 80,000-seating capacity cricket stadium and an international-standard sports complex designed to host international sporting events will be constructed by the Karnataka Housing Board in Anekal Taluk of Bengaluru Urban District, he added.
The chief minister announced that a high-level committee will be constituted under his chairmanship to oversee the implementation of Backward Classes programmes, employment and educational reservations, filling of backlog vacancies and addressing the issues of these communities.
Siddaramaiah said Karnataka is leading in the country’s Information Technology sector. "Our state has contributed to 43% of India’s IT exports. Under the new IT Policy 2025-30, software exports are expected to reach ₹11.5 lakh crore by 2030," he said.
The chief minister said 10 working women’s hostels for Scheduled Castes and Scheduled Tribes with a capacity of 50 each will be started in Bengaluru, Mysuru, Hubballi-Dharwad, Mangaluru, Belagavi, and Kalaburagi.
"Schneider Electric Youth Impact Centre will be established in Mysuru and Kalaburagi at a cost of ₹16 crore each. This will enable the training and employment of 2,000 students every year," the chief minister said.
The chief minister said under the ‘Yuva Nidhi’ scheme, unemployment allowance of ₹913 crore has been paid to 3,08,267 eligible beneficiaries through direct cash transfer.
Under the Ayushman Bharat-Arogya Karnataka scheme, it has been decided to revise the existing 2018 treatment package rates and implement the HBP-2022 package rates, Siddaramaiah said.
"This will ensure better quality healthcare facilities for poor patients. An additional ₹400 crore will be provided for this purpose. The scheme will be implemented by converging funds from Yashasvini, the Karnataka Building and Other Construction Workers Welfare Board, the Employees’ State Insurance Scheme, and other applicable schemes," he added.
The chief minister said, under the Anaemia-Free Nutritious Karnataka scheme, anaemia screening has been conducted for 52 lakh school and college students.
"Free treatment has been provided to 11.7 lakh children found to be anaemic, of whom 3.7 lakh have fully recovered. Treatment and follow-up are continuing for the remaining children," he said.
The chief minister said, for fiscal year 2026-2027, ₹28,608 crore has been allocated for the Gruha Lakshmi scheme, one of the guarantees of the government.
Siddaramaiah said Victoria Hospital will be renamed after Shantaveri Gopala Gowda.
Siddaramaiah said the state government has signed an MoU with Azim Premji Institute to set up a 1000-bed charitable super speciality hospital.
The chief minister said hospital patients will receive food through ISKCON.
The chief minister announced that Child Health and Nutrition Rehabilitation Centres will be established to combat malnutrition.
Free insulin pens will be provided to diabetes patients under 18 years of age, he added.
Siddaramaiah said trauma care centres will be set up in district and taluk hospitals to enhance emergency medical response.
To strengthen critical care, ₹45 crore has been earmarked to upgrade ICU equipment across Karnataka.
Siddaramaiah announced that the ‘Rohith Vemula Act’ will be implemented in all government, private and deemed universities in the state to prevent academic and social atrocities against students on the basis of caste.
For the development of education in the Kalyana Karnataka region, basic facilities will be provided by the Kalyana Karnataka Regional Development Board to 75 government first-grade colleges, 23 polytechnics and five engineering colleges.
Fifteen new courses, such as AI, Machine Learning, Cloud Computing, Mining Engineering, etc, will be started in 11 government polytechnics and Chitradurga Government Engineering College
The chief minister said ₹900 crore will be allocated for healthcare infrastructure development under the Health Department.
Siddaramaiah said 800 schools will be upgraded to Karnataka Public Schools for ₹3,900 crore.
"One qualified mental health counsellor will be appointed in each of the 204 BRC centres to relieve stress and improve mental health among students. Under the Vidyavikas Yojana, activity books for pre-primary students, value education books for classes 1 to 10 and textbooks for pre-university students will be provided free of cost," he said.
"In collaboration with IIT Dharwad, about 12.28 lakh students studying from Class 8-12 will be provided with personal self-learning digital tutor facility by adopting AI technology in the learning process at an estimated cost of ₹5 crore," he added.
The chief minister announced that student elections will be held in colleges and universities to strengthen the democratic fabric in the state.
Siddaramaiah said “mess committees” would be set up for providing quality food in hostels and residential schools. The mess committees will be formed under the leadership of the students, with the government providing all assistance in advance.
The chief minister said Karnataka plans to ban social media use for children under the age of 16.
A Centre of Excellence will be set up at Mangalore Fisheries College to encourage biotechnology enterprises, the development of innovative technology and mariculture, Siddaramaiah said.
The value of fishing equipment kits provided free of cost to fishermen will be increased from ₹10,000 to ₹20,000 to encourage fishing activities, he added.
The chief minister said hydroponics and cocopeat-based soil-less agriculture will be promoted to save water and prevent soil diseases.
"For the silk sector, Silk Parks will be established in Ramanagara, Sidlaghatta, Haveri, Tandavapura (Mysuru), and Kalaburagi. Reeling centres will be established in collaboration with farmer entrepreneurs and farmer producer organisations on available land in selected areas of the Silk Department. The transportation cost subsidy for silk cocoons produced in North Karnataka districts, sold in any government silk cocoon market, has been increased from ₹10 per kg to ₹20 per kg," the chief minister said.
Siddaramaiah said Lingambudhi Botanical Garden in Mysuru will be developed to attract tourists and nature lovers.
"With the Supreme Court rejecting petitions by Tamil Nadu challenging the Mekedaatu project, Karnataka has seen legal victories. We will work towards implementing the project on priority," Siddaramaiah said.
Siddaramaiah said till the end of February, 25 lakh farmers received ₹22,000 crore loans, added that 38 lakh farmers will get zero-interest loans in the upcoming year.
To address the issue of the stray dog menace, two institutions will be set up at Bengaluru and Bidar to train veterinarians and veterinary students in technical expertise in canine birth control, the chief minister said.
After a detailed study, the government will also set up an agriculture college in Athani, Siddaramaiah said.
The chief minister said two cold storages with a total capacity of 12,000 metric tonnes will be established at a cost of ₹64 crore in Honnali taluk of Davangere district and Toravi in Vijayapur district for processing horticulture produce.
"High-value gardens, post-harvest facilities, and horticulture-based industries will be established under a PPP model. The Lingambudhi Botanical Garden in Mysuru will be developed to attract more tourists," he added.
The District Training Centre in Chitradurga district will be upgraded as a state-level 'Agribusiness Training Centre’. Farmer malls will be established in every taluk of Kolar district on a pilot basis to provide seeds, pesticides, fertilisers and agricultural machinery under one roof, the chief minister said.s
Siddaramaiah said the "Chief Minister's Agriculture Extension" scheme will be implemented over the next three years with an expenditure of ₹100 crore to increase farmers' income by strengthening post-production agricultural activities.
The "Vasudha Amrit" programme will also be implemented over the next three years to promote eco-friendly and sustainable agricultural practices.
Implementation of the Sasya Sanjeevini scheme over the next three years to provide timely information to farmers on crop protection from pests and diseases, use of biological pesticides, and safe management practices.
AI technology-based farmer call centers will also be established and upgraded for agricultural information.
Siddaramaiah said agricultural loans worth ₹30,000 crore will be provided to 38 lakh farmers at zero interest.
Siddaramaiah said that greater emphasis will be given to addressing regional disparities. In-principle approval has been given to the recommendations of the Govinda Rao Committee that had declared several districts of Kalyana Karnataka as backward.
“We remain committed to examining and implementing the recommendations of the State Policy and Planning Commission, the Fifth Finance Commission, and the Administrative Reforms Commission,” Siddaramaiah said.
"The 16th Finance Commission has submitted its report and recommended 4.131% share of taxes to Karnataka. It is higher than the 15th Finance Commission recommendation and is expected to ease some fiscal strain. We welcome the commission’s yardstick to recognise and incentivise states contributing to GDP growth in a big way," Siddaramaiah said.
Karnataka’s total debt currently stands at ₹8,24,389 crore, while the state is expected to generate around ₹11,000 crore in revenue from mining royalties, Chief Minister Siddaramaiah said.
Cess and surcharge collected on sin and luxury goods are completely going to the Union government without a share to the states, said Siddaramaiah. We implore the Union government to share these revenues with states to offset the losses incurred due to the implementation of the new GST regime, he added.
Chief Minister Siddaramaiah said there’s been balanced growth in all sectors. The agriculture sector has grown by 9.1 percent and the industrial sector growing by 6.7 percent due to a good monsoon.
According to the chief minister, Karnataka has seen 8.3% growth when compared to 2024-2025 receipts from the state’s own taxes. Karnataka is second highest GST contributor to India.
Siddaramaiah said Karnataka’s GSDP in 2025-2026 was 8.1%, higher than the national average of 7.4%.
In 2025-2026, Karnataka received $9.4 billion in FDI, which accounts for 26.7% of total FDI in India.
Siddaramaiah stated that the government will ensure overall development of the state through the 11G policy, which includes the five guarantees, the gig economy, global trade economy, green economy, improving public health, village economy, and a promise to enhance the urban economy of the state.
"Beyond Bengaluru is attracting more investments. Tier 2 and Tier 3 cities are being developed. Despite our efforts, the Union government’s step-motherly treatment is causing losses to Karnataka, including fiscal strain," said the chief minister.
"The Union government has weakened MGNREGA, and it is impacting people adversely. Despite the Union government’s non-cooperation, we have set an example in maintaining fiscal discipline."
Siddaramaiah has announced that 56,432 vacancies in various government departments will be filled this year. We have given a one-time age limit waiver to ensure vacancies are filled after legal hurdles have been cleared, he said.
Chief Minister Siddaramaiah said Karnataka contributes the highest revenue towards the country’s growth. The Union government has to acknowledge it and uphold federalism, he added.
Karnataka Chief Minister Siddaramaiah begins the presentation of the Budget for 2026-27, his record 17th as the state's finance minister. "With this 2026-27 budget, will try to fulfil the expectations of the seven crore citizens of the state,” Siddaramaiah said.
In a first-of-its-kind initiative in Karnataka, Chief Minister Siddaramaiah’s budget presentation will be broadcast live at 230 government bus stands in the state.
According to the Information and Public Relations Department, Vriti Solutions Limited, in collaboration with the Department, will be screening the budget live from 10.15 am through its LED screens installed at select KSRTC bus terminals across the state. The chief minister's post-budget press conference will also be screened live at these terminals.
