Karnataka Budget 2026: CM Siddaramaiah presents his 17th budget, with an outlay of ₹4,48,004 crore
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims·
Why in news
Karnataka CM Siddaramaiah presented the 2026-27 state budget with a total outlay of ₹4,48,044 crore, highlighting a 13.3% increase from the previous year.
Background
The Karnataka budget for 2026-27 features a total outlay of ₹4,48,044 crore and a projected fiscal deficit of ₹97,449 crore. The budget was designed to comply with the Karnataka Fiscal Responsibility Act.
Facts for Prelims
- FactTotal budget outlay for Karnataka 2026-27: ₹4,48,044 crore
- FactProjected fiscal deficit for Karnataka 2026-27: ₹97,449 crore
- FactBudgetary increase: 13.3% compared to the previous year
- BodyKarnataka Fiscal Responsibility Act: The legislative framework governing the state's fiscal deficit and expenditure.
For Mains
Q. Discuss the significance of fiscal responsibility acts in maintaining state-level economic stability while balancing capital expenditure and deficit targets.
Dimensions to cover in your answer
- Fiscal discipline: Balancing state-level growth targets with the constraints of the Karnataka Fiscal Responsibility Act
- Revenue dynamics: Impact of GST rate rationalization on state tax devolution pools
- Expenditure priority: Trade-offs between capital expenditure and managing the projected fiscal deficit
Keywords: Fiscal Responsibility · Tax Devolution · Capital Expenditure · Fiscal Deficit · Revenue Rationalization
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