Karnataka Chief Minister Siddaramaiah presented a ₹4.48-lakh-crore state budget for 2026-27, one of the largest in the state’s history, with a strong focus on welfare programmes, infrastructure, and targeted schemes for minority communities. The budget marks Siddaramaiah’s 17th state budget and comes amid rising fiscal pressures and increasing expenditure on social guarantees.

Key Highlights

• Karnataka presents ₹4.48-lakh-crore budget focusing on welfare expansion, infrastructure investment, and fiscal stability.
• New schemes announced for minorities alongside continued funding for major social guarantee programmes across Karnataka.

The budget outlay represents a significant increase compared with the ₹4.09-lakh-crore budget for 2025-26, reflecting higher allocations for social welfare schemes, development projects and administrative costs. Government data shows that a large share of expenditure is directed towards welfare commitments and public services, with salaries and pensions alone estimated to cost about ₹1.36 lakh crore, highlighting the growing burden on the state’s finances.

A major portion of the budget continues to support the government’s flagship five guarantee schemes, including Gruha Jyoti Scheme (free electricity up to 200 units), Shakti Scheme (free bus travel for women), Gruha Lakshmi Scheme (direct cash support to women heads of households), Anna Bhagya Scheme (free food grains), and Yuva Nidhi Scheme (financial support for unemployed youth). These schemes together received over ₹51,000 crore in allocations in previous budgets, underlining the government’s emphasis on social welfare and income support programmes.

The budget also introduced new initiatives and expanded funding for minority welfare, including investments in education, housing, and community infrastructure. The government plans to strengthen scholarships, skill development programmes and housing schemes for minority groups, aiming to improve socio-economic inclusion and employment opportunities. Previous budgets had already increased allocations for minority welfare by more than 30 percent, signalling the administration’s continued focus on the sector.

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Presenting the budget in the Assembly, Siddaramaiah.said, "Our government’s approach focuses on inclusive development and social justice. We are committed to ensuring that economic growth benefits every section of society." 

Analysts note that while the budget prioritizes welfare spending, it also aims to boost economic growth through infrastructure development, urban expansion and investment in agriculture and irrigation projects. With rising expenditure and debt obligations, however, the government faces the challenge of maintaining fiscal discipline while sustaining its ambitious welfare agenda.