Karnataka Budget 2026–27: Fiscal Deficit Pegged At 2.95 Pc Of GSDP; Liabilities Estimated At Rs 8.24 Lakh Cr

Bengaluru: Karnataka Chief Minister Siddaramaiah on Friday said the state’s total liabilities at the end of 2026–27 are estimated at Rs 8,24,389 crore while presenting the State Budget in the Legislative Assembly.

The Chief Minister stated that for the financial year 2026–27, the revenue deficit is estimated at Rs 22,957 crore, while the fiscal deficit is projected at Rs 97,449 crore, which is 2.95 per cent of the Gross State Domestic Product (GSDP).

The total liabilities of Rs 8,24,389 crore would amount to 24.94 per cent of GSDP. He said both the fiscal deficit and total liabilities remain within the limits prescribed under the Karnataka Fiscal Responsibility Act, reflecting the state’s continued commitment to responsible fiscal management.

The total expenditure for 2026–27 is estimated at Rs 4,48,004 crore. This includes revenue expenditure of Rs 3,38,007 crore, capital expenditure of Rs 74,682 crore and loan repayment of Rs 35,316 crore, he said.

The total receipts estimated in the Budget for 2026–27 are Rs 4,47,240 crore, which includes gross borrowings of Rs 1,32,000 crore and non-debt capital receipts of Rs 190 crore, he said.

For 2026–27, total revenue receipts are estimated at Rs 3,15,050 crore. This includes the state’s own tax revenue of Rs 2,20,000 crore, non-tax revenue of Rs 16,000 crore and receipts from the Government of India amounting to Rs 79,050 crore, CM Siddaramaiah stated.

The revised estimate of total receipts for the financial year 2025–26 stands at Rs 3,93,572 crore. Revenue receipts are estimated at Rs 2,77,402 crore, including the state’s own tax revenue of Rs 1,93,100 crore, non-tax revenue of Rs 17,500 crore and receipts from the Union government amounting to Rs 66,802 crore, the CM said.

For 2025–26, the revised estimate of total expenditure is Rs 3,95,307 crore. This includes revenue expenditure of Rs 3,02,851 crore and capital expenditure, including loan repayment, of Rs 92,456 crore.

The Chief Minister said vehicle sales have shown strong recovery in the current year. Two-wheeler sales increased by 13 per cent and car sales rose by 4 per cent up to January compared to the same period last year.

Revenue collections in the current financial year up to February 2026 have reached Rs 11,630 crore, registering a growth of 8.5 per cent over the previous year. The revenue collection target from motor vehicles for 2026–27 has been set at Rs 15,500 crore, he stated.

Royalty collections from mines up to February in the financial year 2025–26 stood at Rs 7,854 crore, while the revenue target from mining royalties for 2026–27 has been fixed at Rs 11,000 crore, he said.

Revenue collections from Stamps and Registration reached Rs 22,629 crore up to February in 2025–26, registering a growth of 12.3 per cent compared to the corresponding period of the previous year. The government has set a revenue collection target of Rs 29,000 crore for the sector in 2026–27, CM Siddaramaiah stated.

In the Excise department, revenue collections up to February 2026 stood at Rs 36,492 crore, reflecting a growth of 12.7 per cent compared to the previous year. The revenue target from State Excise for 2026–27 has been fixed at Rs 45,000 crore, CM Siddaramaiah said.

For the financial year 2025–26, State GST revenue collections up to February reached Rs 74,160 crore, showing a growth of 5.8 per cent over the previous year. Including Sales Tax and Professional Tax, the Commercial Taxes Department collected Rs 1,00,462 crore up to February 2026, registering a growth of 8.1 per cent, CM Siddaramaiah said.

The government has proposed to reduce the Sales Tax on environmentally friendly Liquefied Natural Gas (LNG) from 14.34 per cent to 5 per cent in order to promote its use in the industrial and transport sectors, he said.

The revenue target for commercial taxes in the financial year 2026–27 has been set at Rs 1,25,000 crore, he stated.

Siddaramaiah also highlighted progress under the government’s flagship Shakti Scheme aimed at women’s empowerment. Women beneficiaries have so far undertaken 684 crore bus trips under the scheme. An allocation of Rs 5,300 crore has been provided for its implementation in 2026–27.

The government will also add 1,000 diesel buses during 2026–27. In addition, with assistance from the World Bank, the Karnataka Electric Bus Programme will be implemented at a cost of Rs 2,000 crore. Under the programme, 32 electric bus depots of the Bengaluru Metropolitan Transport Corporation (BMTC) and 62 depots of other State Road Transport Corporations will be developed, and 4,000 electric buses will be inducted, he announced.

(IANS)