Daijiworld Media Network – Bengaluru
Bengaluru, Mar 7: Chief minister Siddaramaiah on Friday presented his record 17th State Budget, outlining a Rs 4.48 lac crore spending plan for the financial year 2026–27, even as the state faces 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, including revenue expenditure of Rs 3,38,007 crore, capital expenditure of Rs 74,682 crore, and loan repayments of 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% of the Gross State Domestic Product (GSDP). Total liabilities by the end of the year are estimated at Rs 8,24,389 crore, accounting for 24.94% of GSDP. The government stated that both figures remain within the limits set under the Karnataka Fiscal Responsibility Act, reflecting continued adherence to fiscal discipline.
Key announcements
The government announced that 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 aims to supply drinking water to Bengaluru and has faced opposition from Tamil Nadu in the past.
The state also announced plans to enact the Rohith Vemula Act to prevent caste-based discrimination and atrocities against students in government, private and deemed universities.
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 of 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 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 through dense plantation of native species to create urban green spaces.
Technology and innovation
To improve ease of doing business, the state has launched a unified investment portal developed with Microsoft, offering over 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.
A drone testing and performance evaluation facility will also be set up in Chikkaballapur.
IT expansion and coastal region focus
The chief minister announced that Mysuru will be developed as Karnataka’s second IT hub to reduce congestion in Bengaluru.
In a significant announcement for the coastal region, the government said a new IT park will be established in Mangaluru by KEONICS, aimed at boosting the technology ecosystem and employment opportunities in coastal Karnataka.
Economic outlook
Siddaramaiah said Karnataka has created a unique and sustainable development framework described as the ‘11G Model Economy’.
The state’s economy recorded real GSDP growth of 8.1% in 2025–26, surpassing the national growth rate of 7.4%.
He also noted that as a globally integrated state, Karnataka’s perspectives must be considered in the formulation of national trade policy.
Healthcare initiatives
Several healthcare infrastructure projects were announced, including a 450-bed multi-speciality hospital in Karwar at a cost of Rs 198 crore, a trauma care centre in Raichur at Rs 10 crore, and Peripheral Cancer Centres in Mysuru and Tumakuru at Rs 92 crore.
Airport and aviation infrastructure
The government will prepare a feasibility report for a second airport in Bengaluru to decongest the Kempegowda International Airport, currently the third-busiest airport in India.
A total of Rs 1,593 crore has been released for development of seven domestic airports in Karnataka, while Rs 200 crore has been earmarked for the current year.
A flight training school will be set up at Vijayapura airport, while aircraft manufacturing and assembly activities will be undertaken at Shivamogga airport under PPP mode. An aerospace park will also be developed near Mysuru airport by KIADB.
Major Bengaluru infrastructure projects
The Outer Ring Road stretch from Silk Board Junction to KR Pura Metro Station will be developed into a global-standard corridor at an estimated cost of Rs 450 crore.
A tunnel road and elevated road from Hebbal Junction to Mehkri Circle will be constructed by the BDA at a cost of Rs 2,250 crore.
Tenders have been invited for the 17-km North-South Corridor from Hebbal Junction to HSR Layout–Silk Board Junction at a cost of Rs 17,780 crore. Additionally, 158 km of roads will be white-topped at a cost of Rs 1,700 crore.
GST and revenue trends
GST remains the largest component of the state’s revenue, accounting for about 43% of the State’s own tax revenue, with Karnataka ranking second in India in GST collections.
However, GST rate rationalisation has impacted revenues. Before the revision, the average monthly GST revenue growth in 2025–26 was around 10%, which has now reduced to around 4%, leading to an estimated revenue loss of Rs 10,000 crore this year and Rs 15,000 crore next year.
Employment and recruitment
The government has started the process of filling 56,432 posts across various government departments. An age relaxation of five years has also been granted considering delays in recruitment due to court cases.
Science and technology
Karnataka currently has 550 Global Capability Centres (GCCs), and the government aims to set up 500 new GCCs by 2029.
A state-of-the-art Science City will be established in Bengaluru at a cost of Rs 233 crore, while six new planetariums will be set up in Vijayanagar, Ballari, Chitradurga, Yadgir, Koppal and Bidar at a cost of Rs 4 crore each.
Two AI Centres of Excellence will be set up in Bengaluru in collaboration with NASSCOM, at a cost of Rs 16 crore, in the Institute of Bioinformatics and Applied Biotechnology and the Centre for Cellular and Molecular Platforms.
Relations with the Centre
The Chief Minister urged the Union Government to act with sensitivity towards Karnataka’s demands, stating that India’s development requires a cooperative federal system. He also alleged that failure to adhere to federal principles has resulted in injustice to Karnataka.
Education initiatives
Around 800 schools will be upgraded to Karnataka Public Schools (KPS) at a cost of Rs 3,900 crore over the next three years.
A Rs 24 crore English language training programme will be launched for teachers to support bilingual education in government primary schools.
A Personalised Self-Learning Digital Tutor using AI technology will also be provided to 12.28 lac students from classes 8 to 12 at a cost of Rs 5 crore, in collaboration with IIT Dharwad.
Social measures
The government announced a ban on the use of social media by those under 16 years of age.
A Leopard Rehabilitation Centre will be established at Bannerghatta Biological Park to rehabilitate leopards captured from residential areas.
All gram panchayats in the state will be renamed as 'Mahatma Gandhi Gram Panchayats'.
Welfare measures
Working women’s hostels for SC and ST communities will be set up in Mysuru, Bengaluru and Belagavi.
A digital library and study centre for competitive exam aspirants will be established in Dharwad and Bengaluru at a cost of Rs 10 crore each.
The government will also provide 25 acres of land to establish a private Vachana University in Basavakalyana, and Hajj Bhavans will be constructed in Hubballi and Kalaburagi.
Tourism and irrigation projects
A ropeway project connecting Mullayyanagiri and Seethalayyanagiri in Chikkamagaluru will be developed under a PPP model to boost tourism.
At Tadadi, eco-friendly accommodation, walking corridors and tourism information centres will be developed.
Major irrigation projects include completion of the 135-km Chitradurga branch canal by 2027, replacement of 33 gates of the Tungabhadra dam, and implementation of the Uduthore Halla project in Chamarajanagar district at a cost of Rs 490 crore.
Excise reforms
The government will introduce a globally recognised taxation system linking excise duty to alcohol content from April 2026. Price fixation will be deregulated, pricing slabs will be reduced from 16 to 8, and geo-fenced e-lock systems will replace physical escorts for dispatches.
Excise revenue collection up to February stood at Rs 36,492 crore, reflecting 12.7% growth, with the 2026–27 target set at Rs 45,000 crore.
Live updates
1.56 - CM Siddaramaiah concludes the Budget 2026-27 speech.
1.55 - For 2026–27, total revenue receipts are estimated at Rs 3,15,050 crore, comprising State’s own tax revenue of Rs 2,20,000 crore, non-tax revenue of Rs 16,000 crore, and Rs 79,050 crore from the Government of India. Including gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs 190 crore, total receipts are estimated at Rs 4,47,240 crore. Total expenditure for the year is projected at Rs 4,48,004 crore, including revenue expenditure of Rs 3,38,007 crore, capital expenditure of Rs 74,682 crore, and loan repayment of Rs 35,316 crore. The revenue deficit is estimated at Rs 22,957 crore, while the fiscal deficit is projected at Rs 97,449 crore (2.95% of GSDP). Total liabilities at the end of the year are estimated at Rs 8,24,389 crore (24.94% of GSDP), which are within the limits prescribed under the Karnataka Fiscal Responsibility Act, reflecting the state’s commitment to responsible fiscal management - CM
1.54 - For 2025–26, the revised estimate of total receipts is Rs 3,93,572 crore, including revenue receipts of Rs 2,77,402 crore comprising State’s own tax revenue of Rs 1,93,100 crore, non-tax revenue of Rs 17,500 crore, and Rs 66,802 crore from the Government of India. The revised estimate of total expenditure stands at Rs 3,95,307 crore, which includes revenue expenditure of Rs 3,02,851 crore and capital expenditure, including loan repayment, of Rs 92,456 crore - CM
1.49 - Following a Supreme Court order, the state government has enacted legislation to levy a tax on mining activities in addition to royalty on major minerals, but the law has been awaiting Government of India approval for over a year. The state will continue engaging with the Centre for early approval and has estimated Rs 3,000 crore revenue from the mining tax for 2026–27. Meanwhile, royalty collections from mines reached Rs 7,854 crore up to February in 2025–26, and the revenue target from mining royalty for 2026–27 has been set at Rs 11,000 crore - CM
1.45 - Two-wheeler sales have increased by 13%, and car sales have increased by 4% up to January, compared to the corresponding period of the previous year. Revenue collections in the current financial year, up to February 2026, have reached Rs 11,630 crore and have achieved a growth of 8.5% over the previous year - CM
1.45 - Revenue collections in the financial year 2025–26 , up to February reached Rs 36,492 crore - CM
1.44 - Pricing slabs to be rationalised and reduced to 8 slabs from the existing 16 slabs in excise duties - CM
1.43 - Under Commercial Taxes, the state collected Rs 74,160 crore in SGST up to February 2026, registering a 5.8% growth over the previous year, while total collections including Sales Tax and Professional Tax reached Rs 1,00,462 crore, reflecting 8.1% growth. To promote environmentally friendly fuel, the sales tax on Liquefied Natural Gas (LNG) will be reduced from 14.34% to 5% for industrial and transport sectors. The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 will be amended to exempt persons who have paid the full profession tax for the year from filing annual returns, and those exempt from profession tax will also be relieved from submitting returns. For the first time in the country, a structured performance and metric-based evaluation system will be introduced for Group-A officers in the Commercial Taxes Department, forming the basis for counselling-based transfers up to the rank of Joint Commissioner. The commercial tax revenue target for 2026–27 has been set at Rs 1,25,000 crore - CM
1.40 - Under the Law Department, Chief Minister Siddaramaiah said Special Lok Adalats held last year led to the settlement of 2.82 crore civil cases and 1,113 land acquisition cases, involving compensation of Rs 9,978 crore and Rs 132 crore, helping ensure speedy justice and disposal of long-pending cases. An allocation of Rs 175 crore has been made to develop court infrastructure, including court buildings and residential quarters for judges, while a District Court Complex for Bengaluru South district will be constructed at Ramanagara. E-Courts will be introduced on a pilot basis in Bengaluru, Dharwad, Kalaburagi and Mysuru at a cost of Rs 10 crore to promote a paperless and efficient judicial system. Rs 5 crore has been earmarked to provide library and video conferencing facilities at the Advocate General’s office and upgrade infrastructure for CCMS and e-filing in Bengaluru, Dharwad and Kalaburagi. The government will also train judges and lawyers in mediation to help reduce pending cases, and all laws enacted by the government will be prepared in Kannada, while existing Central laws will be translated into Kannada - Siddaramaiah
1.40 - Under the Centrally Sponsored Police Modernization Scheme, an action plan of Rs 354 crore has been formulated to procure advanced communication devices, forensic equipment, CCTV, body-worn cameras, anti-drone systems and drones, with the state contributing Rs 142 crore. The Anti-Narcotics Task Force will be strengthened with Rs 10 crore to achieve a zero-tolerance approach to drugs. To address traffic congestion in Bengaluru, a Rs 25 crore integrated digital platform will be developed by consolidating data from various traffic management agencies. An Urban Policing Innovation Centre will also be set up in collaboration with GBA and corporate CSR partners to tackle urban policing challenges. The validity of fire clearance certificates and completion certificates for non-high-rise buildings will be extended from two to five years, with existing certificates also eligible for renewal for five years. To prevent fire accidents in high-rise buildings, an Aerial Ladder Platform vehicle capable of reaching 52–54 metres will be introduced this year, while the food allowance for fire personnel during operations will be increased from Rs 150 to Rs 300. Under ‘Operation Parishuddikarana’, advanced security equipment including Artificial Intrusion Detection Systems, CCTV and body-worn cameras will be installed in all prisons at a cost of Rs 20 crore to prevent illegal activities and banned items, and a Drug De-addiction Centre will be established in Bengaluru Central Prison - CM
1.39 - Under the Shakti Scheme aimed at women’s empowerment, women have undertaken 684 crore free bus trips so far, and Rs 5,300 crore has been allocated for its implementation in 2026–27. The government has also decided to pay salary revision arrears to Road Transport Corporation employees for the period January 1, 2021 to February 28, 2023, and revise salaries from April 1, 2025, with Rs 1,271 crore allocated for arrears. To improve transport services, 2,000 diesel buses are being procured as announced in the 2025–26 Budget, taking the total buses added in the last three years to 6,596, while 1,000 more diesel buses will be added in 2026–27. With World Bank assistance, the Karnataka Electric Bus Program (KEBP) will be implemented at a cost of Rs 2,000 crore, under which 32 BMTC depots and 62 depots of other transport corporations will be developed and 4,000 electric buses inducted. To manage accident black spots across the state, including Bengaluru, a modern software dashboard system will be developed with IIT Madras and NIC at a cost of Rs 5 crore. A Rooftop Solar project worth Rs 10 crore will be implemented at 25 Regional Transport Offices, driving tracks and automated testing stations, while a seizure yard will be built at Tumakuru for Rs 5 crore. Automated driving test tracks will be constructed at Chikkamagaluru and Tumakuru for Rs 12 crore, and new bus stands will be built at Ramdurga, Honnali and Gadag, along with a bus depot at Tarikere - CM
1.21 - Modern AI Data Labs will be established with a grant of Rs. 10 crores in 50 government colleges in Tier-2 and Tier-3 cities of the State in collaboration with the Central Government’s AI Mission, to make rural youth employable to enhance the employability of rural youth by providing them with necessary skills - Siddaramaiah
1.05 - Coastal Districts of Karnataka have unique tourism opportunities. A “Comprehensive Coastal Tourism Development Plan” will be prepared to harness this unique potential. Connectivity to tourist locations of this area will be increased through Sea plane and Heli-Taxi facilities in collaboration with stakeholders. To ensure pleasant and positive experience to all tourists visiting our state, Rs. one cr will be spent to train tourist guides, taxi drivers, auto drivers and security police staff. Soft skill training courses will be developed to increase enhance the professionalism of these major stakeholders. A Centre of Excellence for Kayaking and Canoeing will be established in Hesaraghatta lake of Bengaluru under PPP model.- CM
1.01 - Banjara Encyclopaedia covering the history, culture, language customs, dress, food, crafts etc. of the Gor Banjara community will be published - CM
12:42 - A report has been submitted by Karnataka State Policy and Planning Commission identifying the five preferred areas, viz., Education, Health, Environment and Climate Change, Agriculture and Women and Children Welfare which will be examined and action will be taken to formulate the plans. Our Government is committed to the overall development of Kalyana Karnataka. During the last three years, the action plan of development programmes of Rs.13,000 crore has been formulated and implemented by the Kalyana Karnataka Region Development Board. For the current year also, action plan of Rs.5,000 crore will be formulated and implemented. 40% of the various discretionary and Macro grants of the Board will be earmarked for the programmes related to Health, Education and eradication of malnutrition. With a mission of increasing the share of Kalyana Karnataka towards the GSDP, policies will be formulated in various sectors and implemented. For this purpose, a separate Planning, Policy and Data Analysis Wing will be established. Action will be taken to provide the digital certificates, by converting the handwritten records of the period prior to 2015 to digitized formats, through e-Janma software. Rs.10 cr will be provided for this purpose “Fifth Edition Karnataka State Human Development Report–2026,” and “State Comprehensive and Sustainable Development Forecast Plan–2031” will be prepared with the help of the experts in various fields. To prepare plans from the village level, District Planning Committees have been formed in 26 districts, and a ‘People’s Plan’ will be formulated. A Knowledge Park will be established in Jevargi utilizing KKRDB grants - Siddaramaiah
12.25 - A committee, formed by our Government under the chairmanship of Prof. M. Govinda Rao to study the development and regional imbalance in the state, has submitted the report containing various measures to address the regional imbalance. This report will be tabled in the legislature. The committee, based on the deficit in Resource Base, economic infrastructure and social infrastructure, has divided taluks of the state into quartile and has identified 59 taluks in each quartile as most backward, more backward, less developed and developed taluks. The committee has recommended to formulate and implement various schemes during the period of next five years, in the field of agriculture, irrigation, industry, education, health, nutrition, urban development, tourism and road communication for resource base increase and economic and social infrastructure development to address the regional imbalance and deficit development identified by the committee. The recommendations of the Committee have been accepted in-principle and our Government is committed to implement them in the phased manner from 2026-27. During the current year Rs.4,291 crore have been reserved for this purpose - CM
12.18 - All gram panchayats in the state will be named “Mahatma Gandhi Gram Panchayats” to immortalise the name of ‘Father of the Nation’ Mahatma Gandhi.
12.05 - Under our government’s ambitious ‘Annabhagya’ scheme, an additional 5 kg of rice has been successfully distributed to 4.54 crore beneficiaries every month with the aim of alleviating hunger among the poor of the State. In the last three years, Rs.17,167 crore has been spent on this scheme. For the year 2026-27, instead of additional 5 kg of rice being currently provided, Indira Food Kit containing nutritious items such as tur dal, sugar, salt, and cooking oil will be distributed every month. During 2026-27, Rs 6,200 crore will be allocated for this purpose - CM
12.04 - 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 - Siddaramaiah
11.59 - 31 Women PU Colleges under Waqf institutions will be upgraded to Degree Colleges. Further, a new women PU College will be started in Savanur - CM
11.58 - Rs.100 crore have been earmarked for the Comprehensive development of Jain, Buddhist and Sikh communities - Siddaramaiah
11.54 - With the slogan ‘Uttama Kalike, Ujjwala Bhavishya’ (Better Learning, Brighter Future) 800 schools — comprising 500 schools unde ADB assistance, 200 schools using KKRDE funds, and 100 schools using KMERC fundi will be upgraded to Karnataka Public Schools (KPS). This will facilitate providing quality education under one roof. An expenditure of Rs.3,900 crore will be incurred for this purpose over the next three years. During the transfer counselling process, teacher posts in Karnataka Public Schools (KPS) will be filled first, treating them as ‘priority posts’. Further, priority will be given to fill vacant posts in these schools during teacher recruitment - CM
11:53 - With the objective of preventing adverse effects of increasing mobile usage on children, usage of social media will be banned for children under the age 16 - CM
11.46 - Two Scheduled Castes, one Scheduled Tribes and one Backward Classes KREIS residential schools will be upgraded as Centres of Excellence to provide quality training for K-CET/JEE/NEET examinations. Meritorious students will be selected through a separate entrance examination for admission to these schools. Rs.5 crore will be provided for this purpose. High-level committee will be set up to bring reforms in the management of 6,562 hostels hosting 8.50 lac hostellers under the departments of Social Welfare, Scheduled Tribes, Backward Classes and Minorities Welfare - CM
11:45- De-Addiction and Rehabilitation Centres” for children below 18 years suffering with drug addiction to be established in collaboration with NIMHANS, Bengaluru and DIMHANS, Dharwad - CM
11:39 - The government will introduce Kerala Model home-based palliative care in collaboration with Pallium India for patients suffering from severe, chronic and terminal illnesses. Victoria Hospital in Bengaluru will be renamed as Shantaveri Gopalagowda Hospital. A 450-bed multi-speciality hospital at Karwar (Rs 198 crore), a trauma care centre at Raichur (Rs 10 crore), and peripheral cancer centres at Mysuru and Tumakuru (Rs 92 crore) have been completed. The Jayadeva Cardiovascular Regional Centre at Hubballi, built at a cost of Rs 236 crore, will be inaugurated this year. An MoU with Azim Premji Foundation has been signed to construct a 1,000-bed charitable super-speciality tertiary care and organ transplant hospital at the Rajiv Gandhi Institute of Chest Diseases in Bengaluru. The government has allocated Rs 620 crore in FY 2026–27 for construction of medical colleges, hospitals and super-speciality hospitals, and Rs 220 crore for procurement of equipment. The 400-bed Jayadeva Cardiovascular Hospital at Mysuru will be upgraded to 600 beds at a cost of Rs 180 crore. As announced in last year’s budget, a 300-bed hospital has been sanctioned at Puttur, and steps have been taken to establish a constituent college of Rajiv Gandhi University of Health Sciences at Bagalkote, which will soon be operationalised. A Detailed Project Report will also be prepared to establish Government Medical Colleges in Vijayapura and Kolar districts - CM
11.28 - Free insulin pens will be provided to improve the health of all children upto 18 years with Type-1 diabetes - Siddaramaiah
11:25 - Fifteen new courses with high demand and employment potential, such as AI, Machine Learning, Cloud Computing, Mining Engineering, and Automation Engineering, will be commenced in 11 Government Polytechnics and in Government Engineering College Chitradurga. Rohit Vemula Act will be enacted to prevent atrocities on caste lines on students across all Government, Private and Deemed Universities in the State. Student union elections will be conducted in colleges and universities - CM
11:19 - In collaboration with IIT Dharwad, a personalized Self-Learning Digital Tutor facility using Al technology, will be provided to approximately 12.28 lac students from Classes 8 to 12 at an estimated cost of Rs.5 crore - CM
11.08 - ‘Vasudhamruta’ program to promote sustainable agricultural practices; farmer call centres to be upgraded using AI - CM
11.02 - Karnataka State economy recorded a strong real GSDP growth of 8.1 percent at a constant prices in 2025-26, surpassing the national growth rate of 7.4 percent for the same period - CM
10.42 - Though we have been striving for the development of our state beyond our capacity, the Union Government continues to treat our State unfairly by disregarding the constitutional principles of cooperative federalism - CM
10.41 - Greater emphasis is being placed on redressing regional disparities. In-principle approval has been granted to the recommendations of the Prof. M. Govinda Rao Committee. 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, says CM Siddaramaiah in his 17th Budget speech in Karnataka assembly - CM
10.39 - Siddaramaiah outlines Karnataka’s ‘11G Economic Model’ for sustainable development - The model focuses on key areas including Guarantee Economy for welfare and gender equality, Good Public Education and Good Health to All, Grassroots Economy covering agriculture and rural development, and Good Governance for citizen-friendly administration. Other components include the Gig Economy with labour welfare measures, Geographical Equality to reduce regional disparities, Global Trade Economy to boost trade and industry, Globe-Trotting Economy to promote tourism, Green Economy encouraging renewable and environment-friendly initiatives, and a Growing Urban Economy to ensure sustainable urban expansion.
10.38 - We urge Centre to act with sensitivity towards Karnataka”s demands: CM Siddaramaiah
10.34 - We are strengthening the administrative system by filling vacant posts in major departments. In line with our election manifesto, employment generation remains a priority. This year, we have initiated the process to fill 56,432 posts. Considering delays due to court cases in recruitment processes, we have granted a one-time relaxation of five years in the upper age limit - CM
10:32 - Beyond Bengaluru initiative is attracting investments: Siddaramaiah
10.29 - Budget 2026-27 will ensure overall development of the state: CM Siddaramaiah
Earlier report
CM Siddaramaiah set to present record 17th budget amid fiscal challenges
Daijiworld Media Network – Bengaluru
Bengaluru, Mar 6: Chief minister Siddaramaiah, holding the finance portfolio, is all set to create history on Friday by presenting his record 17th state budget. While the CM is expected to introduce new welfare programmes for women, farmers, and labourers, there is significant apprehension regarding the potential imposition of fresh levies to fund the government’s ambitious 'guarantee' schemes.
The budget speech is scheduled to commence at 10:15 am in the Legislative Assembly. Having presented his first budget in 1994-95 under the HD Deve Gowda government, this 2026-27 edition marks the fourth budget of his current term and is viewed as a critical political tool to consolidate his leadership.
With the 2025-26 budget outlay standing at Rs 4.09 lac crore, experts predict a possible downward revision due to revenue shortfalls. The primary challenge for the CM remains the funding of the five 'guarantee' schemes while simultaneously allocating resources for infrastructure projects demanded by legislators.
To bridge the fiscal gap, the government may explore hiking sales tax on fuel, motor vehicle taxes, and stamp duties. Higher revenue targets for the excise and commercial taxes departments are also anticipated. Sources suggest the CM will likely reiterate his stance against the union government, alleging 'injustice' in tax devolution and the non-sharing of cesses and surcharges.
Leader of the opposition R Ashoka has lashed out at the government’s fiscal management, dubbing the CM 'Debt-ramaiah'. Ashoka claimed that the state’s debt is projected to exceed Rs 8 lac crore by the end of this term, accusing the administration of breaching fiscal discipline.
"Borrowing to run a government does not require expertise. A clever finance minister should create revenue without burdening the common man," Ashoka remarked, alleging that the CM has already imposed numerous taxes on citizens. He predicted that the budget would primarily focus on criticizing the prime minister and highlighting the guarantees.
In a first-of-its-kind initiative, the department of information and public relations (DIPR) has arranged for the live telecast of the budget presentation across 230 bus stands in Karnataka. Digital screens will broadcast the speech and the subsequent press conference to the public.
DIPR commissioner Hemant Nimbalkar stated that this move aims to bring the record-breaking 17th budget presentation directly to the citizens in real-time.