Karnataka Chief Minister Siddaramaiah revealed that the state’s total liabilities for 2026–27 are projected at Rs 8,24,389 crore while addressing the State Budget in the Legislative Assembly. The revenue deficit for the same period is estimated at Rs 22,957 crore, with a fiscal deficit of Rs 97,449 crore, equivalent to 2.95% of the Gross State Domestic Product (GSDP). These figures fall within the limits set by the Karnataka Fiscal Responsibility Act, indicating the state’s commitment to responsible fiscal management.
The Chief Minister outlined that the total expenditure for 2026–27 is expected to reach Rs 4,48,004 crore, covering various aspects such as revenue expenditure, capital expenditure, and loan repayment. Additionally, the Budget anticipates total receipts of Rs 4,47,240 crore, including borrowings and non-debt capital receipts. Notably, the state’s revenue receipts are estimated at Rs 3,15,050 crore, comprising tax revenue, non-tax revenue, and receipts from the Government of India.
In the financial year 2025–26, Karnataka’s revised estimates indicate total receipts of Rs 3,93,572 crore, with revenue receipts at Rs 2,77,402 crore. The expenditure for the same period stands at Rs 3,95,307 crore, covering both revenue and capital expenditure, including loan repayment. Moreover, the Chief Minister highlighted positive trends in vehicle sales, with notable increases in two-wheeler and car sales compared to the previous year.
Revenue collections from various sectors, including motor vehicles, mining royalties, Stamps and Registration, and State Excise, have shown growth in the current financial year. The government has set ambitious revenue collection targets for the upcoming fiscal year, aiming to further strengthen the state’s financial position. Additionally, initiatives such as the reduction of Sales Tax on LNG and the implementation of the Shakti Scheme for women’s empowerment underscore the government’s focus on economic growth and social welfare.
