Karnataka Budget 2026
Today, Friday, March 6, 2026, Chief Minister Siddaramaiah is presenting the Karnataka Budget for 2026-27. This is a historic milestone as it marks his 17th budget presentation, placing him just one shy of the national record. For the fiscal year ending in March, the size of the government’s budget was Rs 4.09 lakh crore, of which 82% involved revenue expenditure and debt repayment. The remaining Rs 71,336 crore was capital expenditure.
Key Highlights & Expectations
- Five Guarantee Schemes: The government is expected to allocate between ₹55,000 to ₹60,000 crore for its flagship guarantees (Gruha Lakshmi, Gruha Jyothi, Shakti, Anna Bhagya, and Yuva Nidhi). To manage the fiscal strain, there is speculation about new eligibility criteria or conditions for these schemes.
- Infrastructure & Development: Large allocations are anticipated for Bengaluru's development, including tunnel projects and road networks. There is also a push for special grants for the Kalyana Karnataka region.
- New "Indira Kit": There are reports that the budget may introduce an "Indira Kit" containing essential items like dal, oil, and sugar for ration card holders, alongside free sarees under the Gruha Lakshmi scheme.
- Employment: The government has plans to fill over 56,000 vacant government positions, which will lead to a significant rise in the state's salary expenditure.
Fiscal Challenges
- Revenue Shortfall: The state is facing a revenue gap of roughly ₹15,000 to ₹18,000 crore, largely attributed to GST rate rationalizations implemented in late 2025.
- Deficit Budget: For the third year in a row, the state is expected to project a revenue deficit, likely around ₹6,000 crore for the upcoming fiscal year.
- Debt Debate: There is an ongoing dispute between the State and the RBI regarding Karnataka's total liabilities. While the RBI estimates it at ₹8.14 lakh crore, the State Finance Department maintains it is closer to ₹7.64 lakh crore (about 24.91% of GSDP).
