Karnataka Budget 2026 Highlights | CM sets Rs 45,000 crore target for State Excise for financial year 2026–27

Karnataka Budget 2026 Live Updates | CM Siddaramaiah set to present his record 17th budget today

Karnataka Budget 2026 Live Updates | 'Others need Budget, we don’t to take up developmental work': DKS

Deputy Chief Minister D K Shivakumar on Wednesday said he does not need the State Budget to carry out developmental works in his Bengaluru South district.

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Karnataka Budget 2026 Live Updates | Panels pitch for reforms in 5 areas

The formulation of a comprehensive State Gender Policy, the setting up of a Transgender Development Board, and the removal of the contract labour system are among the key recommendations made for the upcoming 2026–27 State Budget by a sub-committee functioning under the Karnataka State Policy and Planning Commission (KSPPC).

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Karnataka Budget 2026 Live Updates | Educationists demand 15% raise in allocation

As the Karnataka government prepares to present its 2026-27 Budget, educationists are calling for a shift towards long-term structural reform, arguing that last year’s allocation fell short of the sector’s needs.

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Karnataka Budget 2026 Live Updates | Growing admin costs to hog Budget outlay

Chief Minister Siddaramaiah, who once advocated for administrative weight loss for the government to cut costs, will have to allocate a staggering Rs 3.45 lakh crore towards day-to-day expenses in the next fiscal.

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Karnataka Budget 2026 Live Updates | In a first, Karnataka budget to be livestreamed at over 230 KSRTC bus terminals

In a first in Karnataka, Information and Public Relations Department is all set to livestream the state budget for the year 2026-27 to be presented by Chief Minister Siddaramaiah on March 6 at the Vidhana Soudha in Bengaluru, on LED and TV screens at over 230 select KSRTC bus terminals in the state.

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'Guarantee'd challenge for Siddaramaiah in his 17th Budget as fear looms over fresh levies

Karnataka Chief Minister Siddaramaiah, who will present his record 17th Budget as the finance minister on Friday, may offer new programmes for women, farmers and workers, while fear lingers that he may consider fresh levies on citizens to mobilise resources.

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Karnataka Budget 2026 copies being brought to Vidhana Soudha in Bengaluru on Friday (March 6, 2026).

Karnataka CM Siddaramaiah reaches Vidhana Soudha to present Budget 2026-27

Chief Minister Siddaramaiah arrives in the Legislative Assembly to present the State Budget.

CM Siddaramaiah at Vidhana Soudha

Watch Karnataka Budget 2026-27 Presentation here

Chief Minister Siddaramaiah begins presenting Karnataka Budget 2026

CM Siddaramaiah.

"With the 2026-27 budget will try to fulfill the expecatations of the seven crore citizens of the state," says CM Siddaramaiah

"It is my belief that the budget is not merely an account book of revenues and expenditures, but an opportunity for a government to demonstrate its accountability to its people. It is the duty of a democratic government to account for every paisa of tax paid by the public. Through my 17th budget record today, I am placing before the people of the state the welfare and development initiatives our government will undertake for the coming one-year period, the state's economic situation, the challenges facing the government, and a preview of future progress," noted CM Siddaramaiah.

"With the aspiration that the budget should not be limited to mere papers but should serve as a handbook shaping the future of the state's seven crore Kannadigas, I am presenting the 2026-27 budget to the entire populace of Karnataka today," said CM Siddaramaiah.

Budget 2026-27 will ensure overall development of the state: CM Siddaramaiah

"With 11G policy, which includes five gurantees, improving public health, village economy, Gig economy, global trade economy, green economy, enhance urban economy and other initiatives of the govt, will ensure overall development of the state," says CM Siddaramaiah

"Despite the step-motherly treatment from centre, our state government has performed well and it has become a model state," noted CM Siddaramaiah

Beyond Bengaluru initiative is attracting investments: Chief Minister Siddaramaiah

"State government's initiative of Beyond Bengaluru to encourage companies to set up industries in tier-2 and tier-3 is getting response," says CM Siddaramaiah

"State attracted $9.4 billion foreign direct investments in the first half of 2025-2026," CM added.

Though Karnataka is no. 2 in terms of GST collection, but GST rate rationalisation dented state's share: CM Siddaramaiah

"In the previous year, Karnataka collected Rs 1.32 Lakh crore GST collection, but rationalisation dented the state's share. But, thanks 16th Finance Commission recommendation to increase the state's share of funds from the centre has brought some relief," noted CM Siddaramaiah.

Siddaramaiah announces 'CM Krushi Vistara' scheme for farmers

"In a bid to help farmers to fight pests, launch the Sasya Sanjeevini initiative for next three years, said CM Siddaramiah

'Based on detailed report, the government will set up Agriculture college in Athani', noted CM.

Also, Government's MSIL to set up malls for farmers on a pilot bais in all taluks of Kolar district to provide them quality seeds, fertilizer, pesticides and farm implements under one roof, said CM Siddaramaiah.

Karnataka government to set up CT Scanning machines in Veterinary Colleges in Belgaum and Bengaluru.

Dog Birth-control Training Centers to be opened in Bengaluru and Bidar: CM

"With the objective of addressing the stray dogs problem in a scientific and effective manner, 'Dog Birth-control Training Centers' will be established in Bangalore and Bidar to give advanced technical training to veterinary doctors and veterinary students," said CM

Govt to completely digitalise APMC operations soon: CM

"Government to completely digitalise the activities of Agricultural Produce Market Committees, an Enterprise Resource Planning system will be developed at a cost of Rs.10 crore," said CM

Mekedatu project: State to submit revised DPR

"The dismissal of the petitions filed by the State of Tamil Nadu in the Supreme Court with regard to flagship Mekedatu scheme is a significant legal victory for our State. In light of this judgement, a Revised Detailed Project Report (DPR) along with a proposal for forest clearance will be submitted shortly to Central government," said CM

"Also, state government will complete the 18.23 km of canal work of 2nd phase of the Yettinahole project this year," said CM

Social media platforms like Facebook, X platform, Instagram to be banned for children under 16 in Karnataka

"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 of 16," said CM Siddaramaiah.

"184 Government Higher Primary Schools have been upgraded to High Schools and 50 High Schools have been upgraded to Pre-University Colleges to facilitate the academic progress of students," said CM

CM Siddaramaiah also announced that 15,000 vacant posts of teachers in schools and colleges will be filled in the year 2026-27.

Rohith Vemula Act will be enacted to prevent atrocities in Schools and Colleges

"Rohith Vemula Act will be enacted to prevent atrocities on caste lines on students across all Government, Private, and Deemed Universities in the State," said CM Siddaramaiah.

11.7 lakh children diagnosed with anaemia to get free treatment

"Free treatment has been provided to 11.7 lakh children diagnosed with anaemia, of whom 3.7 lakh children have fully recovered. Treatment and follow-up for the remaining children are being continued," said CM Siddaramaiah.

With partnership with IIT-Dharwad, state government will grant Rs five crore fund to offer free digital tutoring to students studying in 8th to 12th grade.

Taking a leaf out of Kerala health policy, Karnataka to offer home-based palliative care

"Kerala model home-based palliative care will be provided in collaboration with Pallium India for patients suffering from severe, chronic, and terminal illnesses: CM Siddaramaiah

Also, government to implement Public Health Cadre in a phased manner in the state.

Jayadeva Cardiovascular Regional Centre to open in Hubli

Jayadeva Cardiovascular Regional Centre at Hubli costing Rs 236 crore will be inaugurated during this year.

An MoU has been signed with Azim Premji Foundation for construction of 1,000-bedded Charitable Super Speciality Tertiary care and Organ Transplant.

A 450-bed Multi-Speciality Hospital at a costing of Rs.198 crore at Karwar, a Trauma Care Centre at a cost of

Rs10 crore at Raichur and Peripheral Cancer Centers in Mysuru and Tumakuru at a cost of Rs. 92 crore have been completed.

Victoria Hospital in Bengaluru will be renamed as Shantaveri Gopla Gowda Hospital

Gruhalakshmi: Rs 28,608 crore earmarked for scheme

Rs 28,608 crore has been earmarked for the scheme this year.

So far, Rs.62,345 crore has been paid to all eligible beneficiaries. 1.24 crore beneficiaries have availed of financial assistance under this scheme successfully.

1,668 Anganwadi buildings to constructed at all districts of Kalyana Karnataka region

"Construction of Anganwadi buildings in 1,668 available sites across the districts of Kalyana Karnataka region shall be taken up at a cost of Rs. 200 Crore under KKRDB grants to strengthen Early Childhood Care and Education (ECCE) in Kalyana Karnataka region," said CM Siddaramaiah.

Also, a high-level committee will be constituted for comprehensive reforms of Anganwadi centres.

During the 2026-27 financial year, Rs.63,135 crore will be provided for child-centric programmes and Rs.94,663 crore will be provided for women-centric programmes.

Education and human resource development

Govt says scholarships worth Rs.2,676 crore have been given to 75 lakh students, education loans worth Rs 389 crore have been sanctioned to 2,231 students and tuition fees of Rs 1,273 crore has been reimbursed in respect of 18 lakh students.

Rs 15,081 crore has been provided for the education of 13.30 lakh children in 1,258 residential schools, 300 Moulana Azad Schools and 5,306 hostels, across the state.

Rs 44,632 core earmarked for Karnataka Scheduled Castes Sub-Plan and Tribal Sub-Plan

In the year 2026-27 a total of Rs 44,632 crore has been provided under Karnataka Scheduled Castes Sub-Plan and Tribal

Sub-Plan including Rs.31,804 for Scheduled Caste Sub-Plan and Rs. 12,828 Crore for Tribal Sub-Plan.

Also, Rs 56 crore will be provided additionally towards revision of rates for the maintenance cost of pre-matric and post-matric hostels under Social Welfare, Scheduled Tribes, Backward Classes and Minorities Welfare Departments.

And, Rs 25 crore has been earmarked for procuring essential basic infrastructure facilities such as two-tier cot, coir mattresses, solar water heaters and dining tables in Government Pre-Matric and Post-Matric hostels.

Government to upgrade 31 residential schools to facilitate Pre-University education of students belonging to Scheduled Caste, the Scheduled Tribes and Backward Classes.

Government will also start 40 new residential schools for students belonging to Scheduled Caste, Scheduled Tribes and Backward Classes in hoblis not having residential schools.

Sri Maharshi Valmiki Administrative Soudha will be constructed at Sumanahalli in Bengaluru at a cost of Rs.50 crore to accommodate the Directorate of Scheduled Tribes, and the Corporation and other offices under the Department.

New minority welfare schemes announced

-- 25 new post-matric hostels with 150 strength will be started in districts with high demand. The student strength in existing 25 hostels will be increased by 50.

-- 10 Saint Shishunala Shariff Residential Schools will be started with CBSE curriculum to meet the high demand for Minority Residential Schools. Rs.10 crore is provided for this purpose in the current financial year.

-- 25 new Saint Shishunala Shariff residential schools will be started in 2026-27.

-- Works to be take up to upgrade 117 Maulana Azad Model Schools and Urdu Schools as Karnataka Public School at a cost of Rs 600 crore. In the current year, additional 100 schools will be upgraded under the same model at a cost of Rs.400 crore

-- Four Residential Schools will be established as Centres of Excellence to provide quality coaching for K-CET/JEE/NEET examinations to selected meritorious PUC students of Minority Residential Schools. Special CET/JEE/NEET training will be given to students of 20 residential schools.

-- Haj Bhavans will be constructed in Hubballi and Kalaburagi to provide necessary facilities and amenities to Haj pilgrims and their relatives.

-- Waqf properties located in high-demand commercial areas will be developed under Public-Private Partnership model

New housing schemes announces

"After our government assumed office, a total of 4,19,454 houses have been completed at a cost of Rs.7,328 crore. During the current year, a target has been set to complete three lakh houses. During the tenure of previous Government 4.90 lakhs houses were approved without providing any funds. Action will be taken by our government to complete these houses," said CM Siddaramaiah.

With an objective of providing shelter for all, a new target of one lakh BLC houses will be sanctioned under various housing schemes of the State. Under this target, subsidy provided to the beneficiaries belonging to the General Category will be increased from Rs 1.20 lakh to Rs 2 lakh and for beneficiaries belonging to Scheduled Caste (SC) and Scheduled Tribe (ST) subsidy will be increased from Rs 2 lakh to Rs 3 lakh.

"Under the Pradhan Mantri Awas Yojana (AHP), the construction of 1.29 lakh houses is being implemented by the Karnataka Slum Development Board. An additional grant of Rs 1,136 crore has been provided by the State government towards the beneficiary share and a total of 79,134 houses have been dedicated to the public during 2025-26. This has provided permanent shelter to the slum dwellers," CM noted

Under the ‘Namma Mane’ Scheme, 50,000 sites will be distributed by KHB at concession rate in the next two years.

80,000-seat cricket stadium to be built near Bengaluru

"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," said CM Siddaramaiah

Anna Bhagya Scheme

In the last three years, Rs17,167 crore has been spent on this Anna Bhagya 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.

Under the ‘Dasoha’ Scheme, food grains are provided to 32,059 beneficiaries from 274 charitable institutions across the State at a cost of Rs 14 crores. This scheme will be extended to 34 new charitable institutions covering 6,701 beneficiaries in this year.

Labour welfare schemes

-- Women working in various industries in the State including women government employees have been provided with the facility of availing one day’s paid leave during menstrual periods.

-- An amount of Rs.39 crore has been spent to provide financial assistance under various welfare programmes to 43,936 workers in the organised sector paying contribution to the Karnataka State Labour Welfare Board.

-- Under ‘Ashadeepa Scheme’, Rs18 crore stipend has been reimbursed to employers in respect of 5,062 Scheduled Castes and Scheduled Tribes apprentices.

-- With the objective of encouraging education among the children of construction workers, Karnataka Building and Other Construction Workers Welfare Board will establish

-- 10 GTTC centres at a cost of Rs 60 crore each. Rs 600 crores will be earmarked for this purpose.

CM Siddaramaiah announces 'Kayaka Bhagya'

'Kayaka Bhagya', an online employment exchange scheme to provide skill-based job opportunities to various categories of unorganised workers will be implemented at a cost of Rs.5 crore.

Rs 1,386 crore earmarked for K-QUEST project

CM annonuced to implement K-QUEST” (Karnataka – Quality Upgradation for Employment and Skills Transformation) Project over a period of five years in partnership with ADB at a total cost of Rs.1,386 crore.

The main objective is to improve the infrastructure and training standard in Government Industrial Training Institutes (ITIs), KGTTIs, KSDA, and JTSs in the State.

Schneider Electric Youth Impact Center will be established in Mysuru and Kalaburagi at a cost of Rs 16 crore each. This will enable training and employment of 2,000 students every year.

Under ‘Yuva Nidhi’ scheme, unemployment allowance of Rs 913 crore has been paid to 3,08,267 eligible beneficiaries through direct cash transfer.

80,086 candidates have been trained under various departmental programmes Further, CMKKY (Chief Minister's Kaushalya Karnataka Yojane) 2.0 scheme has been launched to promote employability and entrepreneurship among youth in the state.

Devolution of State Government revenue towards Local Bodies will be increased from the current 48% to 50%

The Fifth State Finance Commission has submitted its report for the period 2026-2030. The devolution of State Government revenue towards Local Bodies will be increased from the current 48 per cent to 50 per cent out of Non-Loan Net Own Revenue Receipts (NLNORR). Of this, 35 per cent will be allocated to Panchayat Raj Institutions and 15 per cent will be allocated to Urban Local Bodies.

Rs 69,488 Crore have been approved under Jal Jeevan Mission Scheme

Works worth of Rs 69,488 crore have been approved under Jal Jeevan Mission Scheme. Within in this, central government's share is Rs. 30,888 Crore and the State Government’s share is Rs 38,600 crore. Out of this, only Rs 11,786 crore has been released by Government of India so far, and Rs 19,102 crore is yet to be released. Whereas the State Government has released.

Rs 27,098 crore and only Rs 11,502 crore remains to be released. Though, the Central Government has not released any money during 2025-26, grants amounting to Rs 15,500 crore have been released additionally by the State Government in the interest of this scheme. For the year 2026-27, an amount of Rs. 10,433 crore has been earmarked for this scheme.

All gram panchayats in the State will be named 'Mahatma Gandhi Gram Panchayat' to immortalise the name of Father of the Nation Mahatma Gandhi: Siddaramaiah

'Anantha’ scheme to set up solar micro-grids in all gram panchayats

'Anantha’ scheme will be implemented for setting up solar micro-grids in all Gram Panchayats of the State through public private partnership mode, to make the gram panchayats self-sustainable in payment of electricity bills and in generating required annual estimate of 4,000 MW of electricity.

The government in-principle accepts Prof. M. Govinda Rao's report on development and regional imbalance in the state

Last year, a committee, under the chairmanship of Prof. M. Govinda Rao was formed to study the development and regional imbalance in the state. It 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.

Government increases grant to Bengaluru development from Rs 3,000 crore to Rs 7,000 crore: CM

New development works announced:

-- Development of ward road and infrastructure in five City Corporations of Bengaluru have been undertaken at a total cost of Rs.1,255 crore.

-- White-topping work for 158 KM of road length has been undertaken at a total cost of Rs.1,700 crore.

-- The development of Arterial and Sub-Arterial roads has been implemented at a total cost of Rs.1,936 crore.

-- A project to develop the "Outer Ring Road" from Silk Board Junction to K.R. Puram Metro Station into a global-standard corridor is being undertaken at an estimated cost of Rs.450 crore.

-- Tenders have been invited and implementation is underway for the upgradation of primary Storm Water Drains and lake development works at an estimated cost of Rs.273 crore.

-- To provide the citizens of Bengaluru with transparent, people-friendly, participatory, and responsive governance, the Greater Bengaluru Authority and the Five Corporations have been established.

-- In the year 2025-26, the state government increased the grant for development of Bengaluru from Rs. 3,000 crores to Rs. 7,000 crores. This grant will be continued in the current year as well.

-- For the long-term durability of roads, white topping of more than 450 km of roads will be taken up at an estimated cost of Rs 3,000 crore in the next three years

-- It is proposed to undertake the beautification of 175 junctions, upgradation of 500 km footpaths and the construction of

100 Skywalks over the next three years by using the internal resources of the Bengaluru City Corporations.

-- The development/upgradation works of the Storm Water Drains under the World Bank-assisted Water Security and Disaster Resilience Program are being implemented through tenders at an estimated cost of Rs. 2,000 crores.

Namma Metro to complete 41 km of additional lines during 2026-27

Bengaluru's ‘Namma Metro’ is the second-largest metro rail network in the country. The current operational network spans 96 km, benefiting 10 lakh commuters every day.

Out of Rs 67,460 Crore expenditure incurred till date, State share is 59,376 Cr and Central share is Rs 8,084 Crore. The Central share accounts to only 12 per cent against the 88 per cent State share.

It is proposed to complete a total of 41km of additional metro lines during the financial year 2026-27. This will benefit approximately 15 lakh commuters daily.

A 9 km long pedestrian walkway along the Metro viaduct on the Outer Ring Road (ORR) will be constructed at an estimated cost of Rs.160 Crore, under the sponsorship of Outer Ring Road Companies Association (ORRCA).

Bengaluru to get 40-km tunnel roads and new flyovers

One of the perpetually congested stretches near the Hebbal flyover.

The North-South Corridor project from Hebbal Junction to HSR Layout Silk Board and the East-West Corridor project from K R Puram to Mysore Road, covering a total of 40 km of tunnel roads, have been approved at an estimated cost of Rs.40,000 crore under the BOOT (Build-Own-Operate-Transfer) model.

In the first phase, tenders have been invited for the 17 km long North-South Corridor project at a cost of Rs 17,780 crore.

A Tunnel Road and an Elevated Road from Hebbal Junction to Mekhri Circle will be constructed by the Bangalore Development Authority at a cost of Rs 2,250 crore.

To reduce traffic congestion in Bengaluru city, the Nelamangala – Tavarekere – Bidadi Intermediate Ring Road will be constructed using financial resources of BMRDA and local planning authorities.

Rs 10,578 crores earmarked for Gruha Jyothi scheme this year

To date, 1.74 crore consumers have enrolled under the “Gruha Jyothi” scheme, one of the five guarantee schemes. During the last three years, Rs.28,000 crores has been spent on this scheme. Rs.10,578 cores has been allocated for the current year.

Over the last three years, Rs 48,000 crores has been allocated under the free electricity subsidy scheme benefitting 36 lakh IP sets and supporting 21 lakh farmers who form the backbone of the State. In the current year, Rs 19,290 crores has been earmarked for this purpose.

New infrastructure projects announced

-- Sanction has been accorded for the construction of 216 bridges, 288 bridges repair, and 386 footbridges at a cost of Rs. 2,000 crore during 2025-26. Taking this programme further, bridges with a outlay of Rs 2,000 crore will be constructed over the next two years.

-- The widening and development of the 135 KM Vaghdari-Ribbanpalli road at an estimated cost of Rs 400 crore will be undertaken by securing 50 per cent funds from KKRDB.

-- Digitization of departmental asset records through Land Plan Survey and the construction of a Record Room will be undertaken at a total cost of Rupees five crore.

-- 300 footbridges will be constructed to ensure the safety of the public and school students in the unconnected habitations of the Malenadu and coastal regions of the State.

-- Under Phase-V, Stage-I of the State Highway Development Project (SHDP), 1,512 km of roads are already being implemented at a cost of Rs.4,000 crore. In the year 2026-27,

1,846 km of roads will be developed under Stage-II at a cost of Rs 5,000 crore.

Incubation centre for start-ups in renewable energy sector

To encourage start-ups in renewable energy sector, incubation centre will be set up in collaboration with IIM Bangalore, the University of New South Wales, Australia, and IISc at an estimated cost of Rs 20 crore.

Land acquisition for Bengaluru Suburban Railway project Corridor-2 completed: CM

Nine railway routes are being implemented on 50:50 cost sharing basis with the Ministry of Railways. An expenditure of Rs. 2,950 crore has been incurred towards land acquisition and Rs. 2,682 crore has been spent on construction works. In the budget for 2026-27, Rs. 600 crore has been earmarked for this purpose (Annexure-7).

Land acquisition for Corridor-2 (Benniganahalli - Chikkabanavara) under the Bengaluru Suburban Railway Project has been completed, and construction works are in progress. Land acquisition for Corridor-4 (Heelalige - Rajanukunte) is underway. It is targeted to complete works in both Corridors by December 2030. For the current year, Rs.500 crore has been allocated to these works.

The Baiyappanahalli - Hosur and Yeshwanthpur – Channasandra doubling project is being undertaken at a total cost of Rs 812 crore, with the state government share of Rs 406 crores. Doubling works over a stretch of 14 KM have already been dedicated to public service. A provision of Rs 100 crore has been allocated for the current year.

Mysuru to get Aerospace park

"To promote the growth of aerospace industries in Mysore, an aerospace park will be developed adjacent to the Mysore airport by KIADB," said CM Siddaramaiah..

Karnataka contributed 43 per cent of India’s IT exports: CM

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 Rs. 11.5 lakh crore by 2030.

Karnataka State has moved up from 21st position in the previous year to 14th in the global startup ecosystem and is home to over 18,000 active Start-Ups. Bengaluru is also ranked 5th in the world’s top 50 AI cities in the field of AI and Big Data.

Under flagship LEAP (Local Economy Accelerator Programme) initiative, Karnataka government hopes to increase employment opportunities through long-term industry-academia partnerships, a super 100 industry-academia adoption programme will be implemented in collaboration with KDEM (Karnataka Digital Economy Mission).

An accelerator program for startups will be organized through K-Combinator.

Government to offer incubation facilities to entrepreneurs in the 2nd and 3rd tier cities of the state like Hubballi, Kalaburagi, Hosakote and Mysore, plug and play LEAP labs will be set up by KEONICS ( Karnataka State Electronics Development Corporation Limited).

Mysuru to be developed as Karnataka's 2nd IT City

"To ease the congestion in Bangalore and to strengthen economic activities beyond Bengaluru, Mysore city will be developed as the Second IT city of the State," says CM.

Drone testing facility to come up at Chikkaballapura

Representative image of a drone.

"To support drone testing and performance appraisal, drone testing facility will be established in Chikkaballapur district," said CM Siddaramaiah.

Bengaluru Habba-like art festival to be expanded to other parts of the state

"In collaboration with with ‘Bengaluru Habba’ different art forms such as Rangabhoomi, Lalitha kale, Chitra kale, Shilpakale etc will be organised every year at the cost of Rs. 5 crores," said Siddaramaiah.

Also, foundations will be established in the name of pioneer for spiritual harmony Saint Shishunal Shariff and Veera Rani Belavadi Mallamma.

"A Chair will be established in the name of Jnanapeetha Awardee  Dr U R Ananthamurthy at Kuvempu University, said CM.

Centre of Excellence for Kayaking and Canoeing to come up near Hesaraghatta

CM announced that the government will set up a Centre of Excellence for Kayaking and Canoeing in Hesaraghatta lake of Bengaluru under PPP model.

Govt to prepare 'Comprehensive Coastal Tourism Development Plan'

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. Joy ride and River Cruise schemes also will be encouraged.

Rs 5 crore allocated to set up Leopard Rehabilitation Centre in Bannerghatta

A Leopard Rehabilitation Centre will be established in Bannerghatta for rehabilitating leopards captured from the residential areas in the outskirts of Bengaluru, at a cost of Rs 5 crore.

Also, The total area of 5,676 acres of Hesaraghatta Grassland in the garden city of Bengaluru has been declared as ‘Greater Hesaraghatta Grassland Conservation Reserve’. Measures will be taken for conservation and development of this area.

Ropeway planned at three tourism sites in Chikkamagaluru

A ropeway will be constructed in PPP mode, connecting tourist locations of Mullayanagiri, Seethalayyagiri and Kaimara in Chikkamagaluru district to develop the tourism sector in the region.

2,000 posts to be filled in Forest Dept

Forest Department will be strengthened by filling up 2,000 posts in various cadres in the financial year 2026-27.

Bhoomi land registration software will be upgraded to ‘Bhoomi 8.0' for Rs 50 crore

Under Karnataka Land-Stack scheme, data from the applications of Bhoomi, Mojini, Kaveri, E-Swathu, and E-Asthi will be integrated into a master database and will be hosted on a GIS-based digital platform.

Bhoomi will be upgraded to ‘Bhoomi 8.0’, making it compatible with the latest technologies, at an estimated cost of Rs 50 crore. This upgraded version will be linked with more than 10 departments.

E-KYC and Face Recognition will be made mandatory to ensure transparency and accuracy in 43 services under Revenue Department. Integrating Kutumba, FRUITS and Bhoomi applications, a Decision Support System will be developed.

Some of the original land records in Survey Department are more than 160 years old.

To preserve these documents, Modern Record Rooms will be established at a cost of Rs 72 crore in the offices of Assistant Director of Land Records.

Over 50 lakh Tippans & FMBs and over one crore Atlases in Survey Department will be digitised using GIS software. AutoCAD and Servers will be procured for this purpose.

Remote registration is introduced through Registration Act amendment of 2025. This will help government departments and institutions and common people by doing away with the need to come to Sub-Registrar offices. Further, an Amendment to the Act, to regularize remote registration by notified private institutions has been submitted for the assent of Hon'ble President. Once approved, this will be helpful for the projects by large developers and approved by agencies like RERA.

A new platform will be developed for Digital e-stamping and End-to-End paperless registration. All processes beginning with stamp generation, record writing to documents storage, retrieving and digital sharing will be executed online.

207 Sub-Registrar offices in Registration Department will be digitalized with the objective of long-term storage and preservation of pre-2003 legacy documents.

Vaishnodevi pilgrims to get Rs 5,000 assistance each

Government will give assistance of Rs. 5,000 each, for pilgrims from the State going to Shri Mata Vaishnodevi Temple. Rs. 5 crore grant has been earmarked for this purpose and the amount will be transferred through DBT: Siddaramaiah

Kukke Shri Subramanya Temple and Kolluru Shri Mookambika Temple development authorities will be set up to improve the infrastructure facilities and for the comprehensive development of these centres.

Karnataka guest houses in the pilgrimage centres outside the State at Varanasi, Mantralaya and Tulajapura will be renovated and re-constructed; a new Yatri Nivas will be constructed in Srisailam

Single-window 'Cine Mitra’ platform to facilitate all necessary permissions announced

Cine Mitra’ will be established to facilitate all necessary permissions from various departments needed for film shooting and making related activities under a unified platform.

A “Karnataka Film Location Digital Map” containing comprehensive information about regarding tourist places destinations, historical monuments and filming spots locations in the State, will be developed at a cost of rupees one crore.

The subsidy being given to the quality Kannada movies has been discontinued; our government has selected movies for three years in the year 2025-26 and distributed subsidies. Rs.20 crore will be allocated to distribute subsidies for the remaining years.

8,000 vacant posts to be filled in Home department through direct recruitment

Representative image for Karnataka police

During the last three years, 5,911 vacancies in Karnataka State Police Department have been filled up through direct recruitment. During the current year, total of 8,000 various vacant posts in Home Department will be filled up through direct recruitment.

A permanent Police and Police Auxiliary Services Recruitment Board will be established to do recruitments systematically, transparently and regularly in Home Department.

Under Police Gruha – 2025, a scheme of Rs 2,000 crore, designed for providing well furnished quarters to the department staff, Rs.1,257 crore has been provided till now and a construction of 4,914 quarters has been taken up in five phases. During the current year, construction of quarters at a cost of Rs 250 crore will be taken.

Rs 5,300 crore earmarked for Shakti Scheme, free bus rides for women in 2026–27

Under the Government’s flagship Shakti Scheme, implemented with the objective of women’s empowerment, the number of women passengers availing the benefit has been increasing steadily. So far, women beneficiaries have undertaken 684 crore trips under the scheme. An allocation of 

Rs 5,300 crore has been provided for the implementation of this scheme in 2026–27.

Karnataka to cut sales tax on Liquefied Natural Gas (LNG) from 14.34% to 5% to promote its use in the industrial and transport sectors

CM Siddaramaiah.

For the financial year 2025–26, SGST revenue of Rs.74,160 crore has been collected up to February, reflecting a growth of 5.8% over the previous year. Including Sales Tax and Professional Tax, the Commercial Tax Department has collected Rs.1,00,462 crore up to February 2026, reflecting a growth of 8.1% over the previous year.

It is proposed to reduce the Sales Tax on environmentally friendly Liquefied Natural Gas (LNG) from 14.34% to 5% to promote its use in the industrial and transport sectors.

It is proposed to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 to exempt enrolled persons who have paid the full tax due for a year from filing annual returns.

Further, enrolled persons who are exempt from profession tax, will also be relieved from the requirement of furnishing returns.

Pricing slabs to be rationalised and reduced to 8 slabs from the existing 16 slabs in excise duties

CM Siddaramaiah

The system of levying uniform excise duty based on the alcohol content per litre will be introduce in stage in the next three to four years.

Under the new policy, the government administered price fixation will be completely deregulated. Product placement within slabs will be left to the producers based on market considerations.

Pricing slabs will be rationalised and reduced to 8 slabs from the existing 16 slabs.

Revenue collections in 2025–26 reached Rs 36,492 crore up to February

Revenue collections in the financial year 2025–26, up to February, have reached Rs.36,492 crore, reflecting a growth of 12.7% compared to the corresponding period of the previous year.

The revenue collection target from State Excise for the financial year 2026–27 is Rs 45,000 crore.

Vehicle sales show strong recovery

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 sets Rs 11,000 crore royalty collection target for mines dept

In light of the order of the Supreme Court of India, the State Government has enacted legislation to levy a tax on mining activities, in addition to the royalty on major minerals. The legislation is currently awaiting the consent of Government of India for more than one year. The State Government will continue to engage with the Government of India for an early resolution in this regard. In anticipation of the Government of India’s approval we have estimated revenue of Rs.3,000 crore from the mining tax for the financial year 2026–27.

Royalty collections from mines up to February in the financial year 2025–26 amounted to Rs 7,854 crore.

The revenue collection target from royalty on mines for the financial year 2026–27 is Rs.11,000 crore.

Karnataka's revised estimates of 2025-26 fiscal year

For the year 2025–26, the revised estimate of total receipts is Rs 3,93,572 crore. Revenue receipts are estimated at Rs 2,77,402 crore, which include State’s own tax revenue of Rs 1,93,100 crore, non-tax revenue of Rs17,500 crore, and receipts from the Government of India amounting to Rs 66,802 crore.

For the year 2025–26, the revised estimate of total expenditure is Rs.3,95,307 crore.

This includes revenue expenditure of Rs 3,02,851 crore, and capital expenditure including loan repayment of Rs 92,456 crore.

Karnataka's Budget Estimates 2026-27

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 receipts from the Government of India of Rs.79,050 crore.

Including gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs.190 crore, the total receipts estimated in the Budget for 2026–27 are Rs.4,47,240 crore.

Total expenditure for 2026–27 is estimated at Rs.4,48,004 crore. This includes revenue expenditure of Rs.3,38,007 crore, capital expenditure of Rs.74,682 crore, and loan repayment of Rs.35,316 crore.

For 2026–27, the revenue deficit is estimated at Rs.22,957 crore. The fiscal deficit is estimated at Rs.97,449 crore, which is 2.95 per cent of GSDP, and total liabilities at the end of the year are estimated at Rs.8,24,389 crore, amounting to 24.94% of GSDP. Both the fiscal deficit and total liabilities are within the limits prescribed under the Karnataka Fiscal Responsibility Act, this reflects the State’s continued commitment to responsible fiscal management.

CM Siddaramaiah concludes Budget Speech

CM Siddaramaiah.

"The principles of Sarvodaya, Self-reliance, and Antyodaya propounded by Mahatma Gandhi form the moral foundation of this Budget. Guided by Gandhiji’s vision of ʻdevelopment that wipes the tears of the last person,’ our endeavour is to move forward, on the path of Buddha’s compassion, Basavanna’s dignity of labour and commitment to work, and Dr. Ambedkar’s ideals of social justice. I now present the Budget 2026-27 for the consideration of this august House and seek approval for expenditure up to 31st March, 2027," CM Siddaramaiah concludes the Budget 2026-27 speech.