The Karnataka Legislature on Monday, 24 August 2026, approved the first instalment of supplementary budget estimates worth ₹7,042.69 crore under the Karnataka Appropriation Bill 2026-27. Chief Minister D.K. Shivakumar tabled the supplementary estimates in both Houses of the state legislature, covering a wide range of welfare, infrastructure, and rural development priorities.

Revenue and Capital Breakdown

Of the total supplementary outlay, ₹4,324.35 crore has been earmarked for revenue expenditure, while the remaining ₹2,718.35 crore is allocated for capital expenditure. The split reflects the government's attempt to balance immediate welfare spending with longer-term asset creation.

Key Allocations and Schemes

The supplementary estimates carry several notable line items. A grant of ₹289 crore has been set aside under the Jaladhare programme, with ₹1 crore allocated to each rural Assembly constituency to supply drinking water in drought-affected areas. Separately, ₹1,000 crore has been earmarked as infrastructure capital for road development in Bengaluru city.

The single largest allocation — ₹2,918 crore — goes toward the Viksit Bharat Guarantee for Rozgar scheme, a state-level employment initiative. Another ₹781 crore has been provisioned for Bharat Jodo Youth Clubs. The AMRUT scheme receives ₹708 crore, while ₹193.61 crore has been provided for modification of the motor vehicle tax equity share for Road Transport Corporations.

Additional allocations include ₹152.72 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission, ₹93 crore for the Pradhan Mantri Awas Yojana (Rural), ₹91 crore for Visvesvaraya Jala Nigam, and ₹96 crore for bus procurement by the Karnataka Kalaburagi Road Transport Corporation (KKRTC). A further ₹738 crore covers various other projects.

Context: The 2026-27 State Budget

The supplementary estimates come on the back of a record-setting main budget for 2026-27, presented by then Chief Minister Siddaramaiah on 6 March 2026 — his 17th state budget, the most by any Karnataka finance minister. That budget carried a total outlay of ₹4,48,004 crore, a 13.3% increase over the previous year's revised estimates, alongside a projected revenue deficit of ₹22,957 crore.

Notably, the supplementary estimates signal continued pressure on Karnataka's fiscal position, with the state balancing ambitious welfare commitments against a widening revenue gap.

What Happens Next

With both Houses having passed the appropriation bill, disbursements under the various schemes are expected to begin in the coming weeks. The government's ability to contain the revenue deficit while executing capital projects — particularly the ₹1,000 crore Bengaluru road push — will be closely watched by fiscal observers ahead of the second supplementary round later in the year.