BENGALURU: The state budget for 2026-27 is likely to balloon to Rs 4.7 lakh crore and overall loan borrowing may cross the Rs 1.3 lakh crore mark. Chief Minister Siddaramaiah has initiated budget-related meetings and asked revenue generating departments to meet the target given this financial year.
A senior official from the state government said that with the conclusion of the winter session the Chief Minister will be meeting revenue generating departments, including excise and commercial tax in the next few weeks to know the status. The CM has set a target for revenue mobilization, said the official. Officials will get more clarity on the budget size only by the end of January.
Siddaramaiah had presented a budget of Rs 4.09 lakh crore earlier this year, while the budget outlay for the financial year 2024-25 was Rs 3.71 lakh crore.
The borrowing was Rs 1.16 lakh in 2025-26, which was Rs 9,000 crore more compared to 2024-25.
In 2025-26, the state government had presented a budget outlay of Rs 4 lakh crore, of which 1.4 lakh crore is being spent on salaries and pensions.
A senior official said the government intends to fill vacancies in various departments. The recruitments would have a financial implication. “The state government has also set aside more than Rs 60,000 crore on guarantee schemes. We also have to pay dues to contractors and other administrative expenses,” the official said.There is pressure on various departments to generate more revenue. “At the same time, there is a demand from legislators cutting across party lines to take up development works in their constituencies.
We need more funds and the government will borrow obviously,’’ the official said.
Siddaramaiah had recently written to PM Narendra Modi about the GST rate cuts that have caused sharp drop in tax revenue and demanded the Centre should compensate the states for the losses.