At first glance, the 2026–27 Budget presented by Chief Minister Siddaramaiah appears to be a bundle of numerous promises. However, when one examines the feasibility of implementation, it turns out to be deeply disappointing. This budget, largely an exercise in numbers, has increased anxiety among the public rather than instilling confidence.
Transport Department
In this year’s budget, several major promises have been made for the transport sector, including Rs 1,271 crore for clearing salary arrears of transport corporation employees, the addition of 1,000 new diesel buses and introduction of 4,000 electric buses. In addition, Rs 5,300 crore has been allocated for the Shakti scheme. However, a review of the Action Taken Report (ATR) on last year’s (2025–26) budget raises serious doubts about the credibility of these promises.
For instance, the development of Majestic bus station is still stuck at the stage of preliminary proposal. Similarly, projects such as the construction of automated testing tracks in Honnavar and Chamarajanagar, digitisation of records, and installation of AI cameras remain stalled either at the tender stage or administrative approval. When even basic infrastructure projects have not been implemented, the question naturally arises as to how thousands of crores will be spent on new electric buses and large-scale salary arrear payments.
The allocation of Rs 1,271 crore to clear salary arrears for transport employees from 2021 to 2023, along with the announcement of a pay revision effective from April 2025, may appear welcome on the surface. However, given the current circumstances, certain doubts remain.
At a time when there are widespread allegations that the state government lacks funds even for development works and is facing a severe financial crunch, there is no clarity on how Rs 271 crore will suddenly be mobilised. Even relatively small projects such as automated testing tracks costing just Rs 12 crore, announced in the last year’s budget, are still languishing at the stage of administrative approval and tendering.
Cooperation Department
In an apparent effort to support farmers, the government has set a target of disbursing Rs 30,000 crore in zero-interest agricultural loans to 38 lakh farmers. In addition, Rs 10 crore has been allocated for digitisation of APMCs, and Rs 100 crore to assist maize farmers facing distress. Here too, the gap between targets and achievements from the previous year is striking. In 2025–26, the government had set a target of extending Rs 28,000 -crore in loans to 37 lakh farmers.
However, by the February-end 2026, loans amounting to only Rs 22,000 crore had been disbursed to about 25 lakh farmers. A government that could not meet last year’s target has now suddenly announced a much larger target of Rs 30,000 crore, which appears more like an attempt to mislead farmers rather than a realistic commitment.
Overall assessment
Overall, considering the state government’s present financial stress, the internal political tussle within the ruling party over the chief minister’s position, and the slow pace of implementation of last year’s announcements, there is a strong possibility that many of this year’s promises will remain merely words on paper.
The budgetary picture of the transport and cooperation departments is a clear illustration of this concern. With an empty treasury and intense internal political friction, the administrative machinery appears to have weakened significantly. No matter how attractive the announcements may sound, the government currently lacks both the political will and the financial strength required to implement them. This remains the greatest disappointment of the 2026–27 budget.