Karnataka Budget 2026–27

• 07 Mar 2026

Why in News? 

The Government of Karnataka presented the State Budget for 2026–27 in the Karnataka Legislative Assembly in March 2026. The budget was presented by Chief Minister Siddaramaiah, who also holds the Finance portfolio. The budget focuses on welfare guarantees, infrastructure development, technology, and agriculture. 

Key Points: 

• Total Budget Outlay: The total expenditure proposed for FY 2026–27 is ₹4,48,004 crore, with a revenue deficit of about ₹22,957 crore, making it a deficit budget. 
• Fiscal Position (₹ Crore): 
  • Budget estimate: 4,48,004 
  • Total Receipts: 4,47,240 
  • Revenue Receipts: 3,15,050 
  • Capital receipts: 190  
  • Total Expenditure: 4,48,004 
  • Revenue Expenditure: 3,38,007 
  • Net Capital Expenditure: 74,682 
  • Gross Capital Expenditure: 84,567 
  • Gender Budget: 94,663 
  • Child Budget:  63,135 
• Infrastructure Development: Around ₹7,000 crore has been allocated for infrastructure development in Bengaluru to improve roads, mobility systems, and urban facilities.  
• Urban Infrastructure: 
  • ₹3,000 crore allocated for white-topping of 450 km roads in urban areas. 
  • ₹2,250 crore for new metro and tunnel road projects in Bengaluru.  
• Airport Development: ₹1,593 crore has been allocated for the development of seven domestic airports in the state, with ₹200 crore earmarked for immediate spending in FY 2026–27. 
• Rural Development:  
  • ‘Pragathi Patha’ Scheme with assistance from ADB for development of 7,110 k.m. of rural roads at a cost of Rs.5,190 crore. Budget of Rs.500 crore.  
  • ₹10,433 crore allocated to support Jal Jeevan Mission projects in the state. 
  • ₹500 crore for the Pragati Path scheme aimed at improving rural road connectivity.  
• Artificial Intelligence and Technology: The government announced the establishment of Artificial Intelligence Centres of Excellence in Bengaluru with an allocation of ₹16 crore, in collaboration with technology institutions and industry bodies. 
  • Implementation of Quantum Road Map at a cost of Rs. 10 crore 
• Water Resource Department:  
  • Execution of Mekedatu Project after obtaining forest clearance from the Central Ministry of Environment. 
  • Amount of Rs.490 crore to Vuduthore halla scheme to irrigate 12000 acres of command area in Hanur taluk of Chamarajanagara. 
• Education Sector: 
  • ₹3,900 crore allocated to upgrade 800 schools under the Karnataka Public School model. 
  • 15,000 teaching posts will be filled in schools and colleges. 
  • Amount of Rs. 640 crore for construction of additional classrooms, toilets and repairs in schools and colleges. 
• Health Sector: 
  • ₹900 crore allocated for strengthening health infrastructure. 
  • 2,500 vacancies in the health department to be filled. 
  • Free insulin will be provided to children up to 18 years suffering from Type-1 diabetes. 
• Women and Child Development Department:  
  • Enhancement of Incentives to Rs.45,000 for income generating activities to former Devadasis, Gender Minorities, Chetana and Dhanashree scheme beneficiaries. 
  • Construction of Anganwadi buildings in Kalyana Karnataka region at Rs.200 crore. 
  • Establishment of additional 20 Creches at district level. 
• Agriculture Initiatives: The budget emphasises modern farming and value addition, including the launch of the Chief Minister Krishi Vistara Yojana with an outlay of ₹100 crore over three years to promote scientific farming and reuse of agricultural waste. 
  • Millet and Agricultural Marketing: A Millet Hub will be established to promote millets and organic produce through better marketing, branding, and processing facilities. 
  • Food Security: ₹6,200 crore allocated for distribution of Indira Food Kits, which will include items such as pulses, sugar, salt, and cooking oil for eligible households. 
• Social and Minority Welfare: 
  • ₹44,632 crore allocated under the SC Sub-Plan and Tribal Sub-Plan for welfare of Scheduled Castes and Scheduled Tribes. 
  • Upgradation of Maulana Azad Model Schools and Urdu schools into Karnataka Public Schools with allocations of ₹600 crore and ₹400 crore respectively. 
  • Allocation of Rs.1,500 crore to the corporations of SC, ST, BC & Minority Welfare.  
  • Establishment of Scheduled Tribes Commission. 
  • Starting of 4 new working women's hostels of 100 capacity in Bengaluru. 
• Energy and Sustainability: Plans to install solar micro-grids in all Gram Panchayats under the Anantha scheme and expand renewable energy infrastructure. 
  • Rs.10,578 crores allocated for Gruha Jyothi.  
  • 1250 Electric vehicle charging stations will be established under the PM-E-drive scheme at a cost of Rs. 777 crores. 
  • Incubation Centre for startups at a cost of Rs. 20 crore to be set up with IIM (B), the University of New South Wales, Australia & IISc. 
• Commerce & Industries:  
  • Aerospace common facility centre in KIADB Aerospace park at a cost of Rs. 30 crore.  
  • Rs. 600 crore for the Bengaluru-Mumbai industrial corridor project. 
  • Rs. 225 crore allocated for the empowerment of weavers.  
• Information Technology & Bio-Technology:  
  • Under the LEAP program - Super 100 Industry-Academia Adoption Program, K-Combinator accelerator and Plug-andplay ‘Leap Labs will be established in Hubballi, Kalaburagi, Hoskote and Mysuru.  
  • A new IT Park will be established in Mangaluru to promote GCC by KEONICS.  
  • Mysuru city will be developed as the Second IT city of the State. 
  • A drone testing facility will be established in Chikkaballapur district. 
• Forest, Ecology and Environment :  
  • A ₹1,500 crore programme announced to address human-animal conflicts through measures such as elephant-proof trenches. 
  • A Leopard Rehabilitation Centre at Bannerghatta at a cost of Rs.5 crore. 
  • Establishment of Nature Interpretation Centre at Mysuru Zoo and Bannerghatta National Park. 
  • Development of ‘Cultural Leader Basavanna Biodiversity Park’ at Madappanahalli, Bengaluru 
• Law and Order:  
  • Rs 175 Crore for construction of court buildings and residential quarters for judges.  
  • ₹10 crore allocated for establishing an Anti-Narcotics Task Force to combat drug trafficking and abuse. 
• Digital Safety Initiative: The budget proposes a ban on social media access for children below 16 years to address concerns related to online addiction and mental health. 
• Significance: The budget aims to balance large welfare commitments with investments in infrastructure, technology, agriculture, and human development, while addressing urban challenges and promoting long-term economic growth in Karnataka.