Karnataka Budget 2026: ₹4,291 crore earmarked to address regional imbalance

Based on the recommendations of the Karnataka Regional Imbalance Redressal Committee headed by Professor M. Govinda Rao, Chief Minister Siddaramaiah has earmarked ₹4,291 crore in the State Budget presented on March 6.

In his budget speech, Mr. Siddaramaiah mentioned that the government had accepted the committee’s report in principle, and was committed to implementing the report in a phased manner from 2026-27.

The committee, in its report, has recommended additional financial allocation amounting to ₹43,914 crores for redressal of regional imbalance from 2026-27 to 2031-32. It has recommended major additional allocation to healthcare (₹11,770 crore), Irrigation (₹10,000 crore) and school education (₹7,840 crore), apart from other sectors. As per the report, 60% of the backward taluks are concentrated in north Karnataka.

However, in the budget, the Chief Minister did not specify the allocation details as it still needs to be worked out.

The earlier Nanjundappa Committee on regional imbalance in 2002 had recommended an outlay of ₹31,000 crore to be spent to overcome the infrastructure deficit in 114 backward taluks. Until 2022-23, ₹43,453.98 crore was allocated, ₹35,380.24 crore released, and the actual expenditure was ₹32,610.24 crore.

The Govinda Rao-headed committee in its report has said that the proportion of backward taluks in the total number of taluks had increased from 65% in 2001-02 to 72.8% in 2022-23, indicating a widening of regional imbalances despite overall economic progress. It also pointed out poor implementation of the recommendations of the earlier committee.

Experts have previously pointed out that successive governments have the habit of highlighting even usual development projects in backward regions as being part of special development projects, and it has been seen in the case of Kalyana Karnataka projects, where additional funds were not allocated.

Instead those projects were routed through Kalyana Karnataka Region Development Board (KKRDB), thereby utilising funds allocated to the board. In the present budget, several projects in Kalyana Karnataka region are being routed through KKRDB.