Chief Minister Siddaramaiah unveiled his unprecedented 17th State Budget, detailing a Rs 4.48 lakh crore expenditure proposal for the fiscal year 2026-27, as the state endures a revenue shortfall for the third year in a row.

The budget projects total revenue receipts at Rs 3,15,050 crore, including 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 central government.

Total receipts for 2026-27 are estimated at Rs 4,47,240 crore, which includes gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs 190 crore.
The total expenditure for the year is estimated at Rs 4,48,004 crore, which includes:
• Revenue expenditure: Rs 3,38,007 crore
• Capital expenditure: Rs 74,682 crore
• Loan repayments: 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 per cent of the Gross State Domestic Product (GSDP).

Key Announcements
A modified Detailed Project Report (DPR) for the Mekedatu Dam Project will shortly be presented to the Government of India together with a request for forest clearance. The initiative aimed at providing drinking water to Bengaluru has encountered significant resistance from Tamil Nadu previously.

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The government further revealed intentions to implement the Rohith Vemula Act aimed at stopping caste-based discrimination and violence against students in government, private, and deemed universities throughout the state.

Welfare And Infrastructure Initiatives
The government will build the Sri Maharshi Valmiki Administrative Soudha at Sumanahalli in Bengaluru for Rs 50 crore as part of tribal welfare initiatives to accommodate offices of the Scheduled Tribes Welfare Department.

Waqf assets situated in key commercial zones will be enhanced through a Public-Private Partnership (PPP) framework to realize their economic potential.

The government declared Rs 1,255 crore for the development of roads and infrastructure at the ward level across five city corporations in Bengaluru.

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The state will create 100 Miyawaki urban forests, employing a dense planting of native species to develop green spaces in city areas.

Technology And Innovation Push
To enhance investment and facilitate business operations, the state has introduced a consolidated investment portal created with assistance from Microsoft, providing over 100 services across 30 departments for investors.

The Bangalore Robotics and AI Innovation Zone (BRAIN) will be hosted by the Indian Institute of Science, in partnership with the Indian Space Research Organisation and the Karnataka State Electronics Development Corporation Limited, under the ARTPARK initiative.

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A facility for drone testing and performance evaluation will be established in Chikkaballapur to aid the expanding drone ecosystem.

Expanding Tech Beyond Bengaluru
Mysuru will be developed as the second IT hub of Karnataka to reduce congestion in Bengaluru.

Karmendra Kohli, CEO, SecurEyes Reacting to the Karnataka State Budget 2026-27 says, “The Karnataka Budget 2026-27 sends a strong signal on digital responsibility. The proposed social media ban for children under 16 is a timely step but its success will hinge entirely on robust digital identity verification and enforcement mechanisms, which are inherently cybersecurity challenges. Similarly, the establishment of the Bangalore Robotics and AI Innovation Zone and AI Centers of Excellence is exciting, but every AI platform is a potential attack surface. As Karnataka accelerates its digital ambitions, cybersecurity cannot be an afterthought it must be embedded from the ground up. We look forward to the state building on its Cybersecurity Policy 2024 with dedicated budget allocations that match the scale of its tech aspirations."