Karnataka creates unique, strong, sustainable development models, described as 11G model economy: CM
State’s economy recorded real GSDP growth of 8.1% at constant prices in 2025-26, surpassing national growth rate of 7.4%.
While international trade negotiations are inherently complex and must balance strategic national interests, it is equally important that the perspectives of globally integrated States, such as Karnataka, are meaningfully factored in the formulation of trade policy.
Health infrastructure
Construction of a 450-bed multi-speciality hospital in Karwar at a cost of ₹198 crore
Trauma care centre in Raichur at a cost of ₹10 crore
Also read | Karnataka Budget 2026-27 LIVE updates
Peripheral Cancer Centres will be set up in Mysuru and Tumakuru at a cost of ₹92 crore.
Airport infrastructure
To develop a second airport in Bengaluru to decongest Kempegowda International Airport, the third-busiest airport in India. A feasibility report will be prepared after obtaining technical advice from the Airports Authority of India.
Released ₹1,593 crore for development of seven domestic airports in Karnataka while ₹200 crore has been earmarked for the current year.
Flight training school will be set up in Vijayapura airport
Aircraft manufacturing and assembly activities will be undertaken in PPP mode at Shivamogga airport.
Aerospace park will be developed adjacent to the Mysuru airport by KIADB.
Projects for Bengaluru
Outer Ring Road stretch from Silk Board Junction to K.R. Pura Metro Station will be developed into a global-standard corridor at an estimated cost of ₹450 crore.
Tunnel road and an elevated road from Hebbal Junction to Mehkri Circle will be constructed by the BDA at a cost of ₹2,250 crore.
Tenders invited for 17-km North-South Corridor from Hebbal Junction to HSR Layout-Silk Board Junction for ₹17,780 crore.
White-topping of 158 km of roads at a cost of ₹1,700 crore.
Impact of GST rate rationalisation
GST is largest component of revenue, accounting for about 43% of the State’s own tax revenue.
Karnataka ranks 2nd in India in GST revenue collection.
Changes have reduced State’s GST collection. Before the rationalisation, Karnataka’s average monthly GST revenue growth in 2025-26 was around 10% (net of refunds). After implementation of revised rates, the average monthly growth is around 4%. Overall GST collections expected to reduce by approximately ₹10,000 crore in the current financial year, and ₹15,000 crore in the next year.
Jobs and employment
Started process of filling 56,432 posts in various government departments this year: CM
Age relaxation of 5 years considering delay in recruitment due to court cases: CM
Passengers watch the live telecast of the State Budget at the KSRTC bus stand in Shivamogga on March 6, 2026. The Department of Information and Public Relations has made arrangements for live streaming of the state budget in KSRTC bus terminals across Karnataka.
| Photo Credit:
S.K. Dinesh
Science and Technology
New IT park will be established in Mangaluru by Keonics.
550 GCCs operating in Karnataka, target is to set up 500 new GCCs by 2029.
State-of-the-art Science City would be established in Bengaluru at a cost of ₹233 crore, detailed project report submitted to Central Government for approval.
Six new planetariums will be set up in Vijayanagar, Ballari, Chitradurga, Yadgir, Koppal and Bidar districts at a cost of ₹4 crore each.
Relations with Centre
CM urges Centre to act with sensitivity towards Karnataka’s demands
India, with diverse cultures, can achieve development only through co-operative federal system: CM
By not adhering to federal system of governance as per Constitution, Centre doing injustice to Karnataka: CM
Primary and secondary education
800 schools will be upgraded to Karnataka Public Schools (KPS) to provide quality education under one roof at an expenditure of ₹3,900 crore over the next three years.
To implement bi-lingual classes in government primary schools and to enhance the skills of primary school teachers, an English language training programme will be organised at a cost of ₹24 crore.
Personalized Self-Learning Digital Tutor facility using AI technology will be provided to approximately 12.28 lakh students from classes 8 to 12 at an estimated cost of ₹5 crore, in collaboration with IIT Dharwad.
Social issues
Banned on use of social media by those under the age of 16.
Leopard Rehabilitation Centre to be established in Bannerghatta Biological Park to rehabilitate leopards captured from residential areas on the outskirts of Bengaluru.
All Gram Panchayats in Karnataka will be renamed as ‘Mahatma Gandhi Gram Panchayats’
Rohith Vemula Act will be enacted to prevent caste-based atrocities against students across all government, private and deemed universities
Welfare measures
Working women’s hostels for Scheduled Caste (SC) and Scheduled Tribe (ST) communities will be established in Mysuru, Bengaluru, and Belagavi.
A digital library and study centre will be set up in Dharwad and Bengaluru at a cost of ₹10 crore each for students preparing for competitive examinations.
25 acres of land will be provided to set up a private Vachana University in Basavakalyana.
Hajj Bhavans will be constructed in Hubballi and Kalaburagi for Hajj pilgrims.
Waqf properties located in high-demand commercial areas will be developed under Public-Private Partnership (PPP) model
Tourism infrastructure
Rope-way project, under PPP model, connecting Mullayyanagiri and Seethalayyanagiri in Chikkamagaluru taluk to promote tourism
In Tadadi, environment-friendly accommodation, walking corridors, tourism information centres and other infrastructure will be developed under PPP model.
Water and irrigation projects
135-km long Chitradurga branch canal and associated feeder work will be completed by 2027, enabling filling up of 157 tanks in the region.
Replacement of 33 dilapidated gates of Tungabhadra dam with new gates will be completed before onset of monsoon.
Uduthore Halla project would be implemented in Hanur taluk of Chamarajanagar district at a cost of ₹490 crore to provide drinking water and irrigate 12,000 acres in the command area.
Will focus on improving water-use efficiency by adopting a Pressured Piped Network System of irrigation in 4,745 hectares of command area under Hattikuni and Tungabhadra Left Bank Branch Canal.
Source: https://www.thehindu.com/news/national/karnataka/karnataka-budget-2026-salient-points-key-highlights/article70710339.ece
