Who Gets the Lion’s Share in Karnataka Budget 2026–27? Sector-Wise Breakdown of Siddaramaiah’s ₹4.48 Lakh Crore Plan

Business

oi-Madhuri Adnal

The government of Karnataka has presented a ₹4,48,004 crore budget for 2026-27, signalling a significant expansion in public spending compared with the revised estimate of ₹3,95,307 crore in the previous financial year.

Chief Minister Siddaramaiah outlined a budget that balances welfare programmes, education spending and infrastructure investments, while relying heavily on borrowing to finance capital projects.

A closer look at the “Budget at a Glance” figures reveals which sectors receive the largest share of development spending and how the state plans to allocate its financial resources.

Education takes the largest share

Among all departments, education receives the biggest allocation, with ₹47,224 crore earmarked for the sector. This accounts for roughly 10% of the total development outlay, reinforcing the state’s long-standing emphasis on public education, school infrastructure and higher education initiatives.

The allocation reflects Karnataka’s strategy of strengthening human capital while supporting expanding enrolment in schools and colleges.

Women and child welfare emerges as a major beneficiary

The women and child welfare department receives the second-largest allocation, amounting to ₹34,929 crore, or around 7% of the development budget.

Much of this funding supports welfare guarantees and social assistance programmes aimed at improving household income stability and nutrition.

Energy sector remains a priority

The energy department receives ₹29,947 crore, representing about 6% of development spending. The allocation supports electricity generation, transmission networks and energy infrastructure required to sustain Karnataka’s growing industrial and urban demand.

Reliable power supply remains critical for both manufacturing clusters and the state’s technology-driven economy.

Rural development and infrastructure projects

The Rural Development and Panchayat Raj department is allocated ₹26,559 crore, highlighting the government’s focus on strengthening village infrastructure, local governance systems and rural employment initiatives.

Public infrastructure also receives major funding. The public works and transport department will receive ₹23,100 crore, while irrigation projects are assigned ₹22,436 crore, supporting water management and agricultural productivity.

Urban development and housing allocations

Rapid urbanisation across cities like Bengaluru and other urban centres has led to increased spending on housing and civic infrastructure.

The urban development and housing department has been allocated ₹22,203 crore to support city planning, housing schemes and urban infrastructure improvements.

Social sectors and administration

Several other departments also receive significant allocations to support welfare and administrative functions.

These include:

Revenue department – ₹19,843 crore

Social welfare – ₹18,612 crore

Health and family welfare – ₹17,817 crore

Home department – ₹11,424 crore

Together, these sectors fund programmes related to social protection, healthcare services and internal administration.

Agriculture and food security spending

Agriculture-linked sectors receive smaller but still important allocations. The agriculture and horticulture department will receive ₹8,373 crore, while food and civil supplies is allocated ₹7,942 crore.

In addition, animal husbandry and fisheries receives ₹4,084 crore, supporting rural livelihoods and allied agricultural activities.

A large share under ‘other sectors’

Budget documents show that “other sectors” together account for ₹1,72,757 crore, representing about 37% of development spending.

This category includes numerous programmes across departments, administrative expenditures and cross-sector initiatives that do not fall within the major headline categories.

Borrowing remains a key funding source

To support these spending commitments, Karnataka plans to rely heavily on market borrowing.

The capital account projects ₹1,32,190 crore in receipts, of which ₹1,22,340 crore will come from open market loans, making borrowing the primary funding source for capital expenditure.

Overall, the budget reflects a strategy of expanding welfare schemes and development spending while continuing investments in infrastructure, education and energy.