Bengaluru, March 6 (NationPress) Karnataka's Chief Minister Siddaramaiah announced on Friday that the state's total liabilities are projected to reach Rs 8,24,389 crore by the end of the financial year 2026–27 during the State Budget presentation in the Legislative Assembly.

For the fiscal year 2026–27, the estimated revenue deficit stands at Rs 22,957 crore, while the fiscal deficit is forecasted to be Rs 97,449 crore, which constitutes 2.95 percent of the Gross State Domestic Product (GSDP).

The total liabilities amounting to Rs 8,24,389 crore will represent 24.94 percent of the GSDP. The Chief Minister emphasized that both the fiscal deficit and total liabilities are within the limits set by the Karnataka Fiscal Responsibility Act, showcasing the state’s ongoing dedication to prudent fiscal governance.

The projected total expenditure for 2026–27 is Rs 4,48,004 crore, which encompasses revenue expenditure of Rs 3,38,007 crore, capital expenditure of Rs 74,682 crore, and loan repayments amounting to Rs 35,316 crore.

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

For the upcoming fiscal year, total revenue receipts are expected to be Rs 3,15,050 crore, which incorporates 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 totaling Rs 79,050 crore, as stated by CM Siddaramaiah.

The revised estimates for total receipts for the financial year 2025–26 are Rs 3,93,572 crore, with revenue receipts anticipated at Rs 2,77,402 crore, including state tax revenue of Rs 1,93,100 crore, non-tax revenue of Rs 17,500 crore, and Union government receipts amounting to Rs 66,802 crore.

For 2025–26, the revised total expenditure is estimated at Rs 3,95,307 crore, which includes revenue expenditure of Rs 3,02,851 crore and capital expenditure along with loan repayments of Rs 92,456 crore.

CM Siddaramaiah pointed out that vehicle sales have rebounded significantly this year, with two-wheeler sales increasing by 13 percent and car sales rising by 4 percent compared to the same period last year.

As of February 2026, revenue collections have reached Rs 11,630 crore, reflecting an 8.5 percent growth from the previous year. The revenue collection target from motor vehicles for 2026–27 is set at Rs 15,500 crore.

Royalty collections from mines by February for the financial year 2025–26 totaled Rs 7,854 crore, while the revenue target from mining royalties for 2026–27 has been established at Rs 11,000 crore.

Revenue collections from Stamps and Registration reached Rs 22,629 crore by February in 2025–26, marking a growth of 12.3 percent compared to the same period last year. The revenue collection target for this sector in 2026–27 is Rs 29,000 crore, according to CM Siddaramaiah.

In the Excise department, revenue collections until February 2026 reached Rs 36,492 crore, showing a growth of 12.7 percent from the previous year. The revenue target for State Excise for 2026–27 has been set at Rs 45,000 crore, Siddaramaiah stated.

State GST revenue collections reached Rs 74,160 crore by February 2026, indicating a growth of 5.8 percent over the previous year. Including Sales Tax and Professional Tax, the Commercial Taxes Department collected Rs 1,00,462 crore until February 2026, reflecting an 8.1 percent growth, as mentioned by CM Siddaramaiah.

The government has proposed to reduce the Sales Tax on environmentally friendly Liquefied Natural Gas (LNG) from 14.34 percent to 5 percent to encourage its use in the industrial and transport sectors.

The revenue target for commercial taxes in the financial year 2026–27 is established at Rs 1,25,000 crore, he noted.

Furthermore, Siddaramaiah emphasized advancements made under the government’s flagship Shakti Scheme aimed at empowering women, noting that women beneficiaries have completed 684 crore bus trips under this initiative. An allocation of Rs 5,300 crore has been designated for its implementation in 2026–27.

Additionally, the government plans to introduce 1,000 diesel buses during 2026–27, and with support from the World Bank, the Karnataka Electric Bus Programme will be launched with an investment of Rs 2,000 crore. This program entails the development of 32 electric bus depots for the Bengaluru Metropolitan Transport Corporation (BMTC) and 62 depots for other State Road Transport Corporations, along with the induction of 4,000 electric buses, he announced.