Karnataka Budget 2026-27: Kalyana Karnataka projects routed largely through KKRDB funds

Several initiatives announced for the development of the Kalyana Karnataka region in the State Budget for 2026-27 are proposed to be implemented through the allocations of the Kalyana Karnataka Region Development Board (KKRDB), once again highlighting the growing dependence on the Board’s funds even for projects that ordinarily fall within the domain of regular sectoral spending.

Presenting the Budget in the Legislative Assembly on Friday (March 6, 2026), Chief Minister Siddaramaiah reiterated the government’s commitment to the development of the region comprising Bidar, Kalaburagi, Yadgir, Raichur, Koppal, Ballari and Vijayanagara districts. The Budget proposes to implement a ₹5,000-crore action plan through the KKRDB during the year, with a focus on infrastructure, education, health and other social sectors in the region. Similar allocations have been made in recent years as part of the government’s commitment to provide ₹5,000 crore annually for the development of Kalyana Karnataka.

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While the Budget lists a series of initiatives for the region, many of them are to be executed using the Board’s grants rather than through fresh allocations in the regular departmental budgets. For instance, the government proposes to construct 1,668 anganwadi buildings in the region at an estimated cost of ₹200 crore through KKRDB funds. Infrastructure development works in 75 Government First Grade Colleges, 23 polytechnics and five engineering colleges in the region are also proposed through the Board’s allocations.

Similarly, new residential first-grade colleges are proposed to be established at Nimbaraga in Kalaburagi district, Kakkera in Yadgir district, Ambamatha in Raichur district and Bevuru in Koppal district at a cost of ₹18 crore using KKRDB macro grants. A government first-grade college at Maski in Raichur district is also proposed to be set up through the Board’s funds.

The Budget also indicates that KKRDB annual local plan funds will be earmarked on priority to strengthen the health sector in Kalyana Karnataka, underscoring the continued reliance on the Board’s allocations for sectoral interventions.

Article 371(J)

While the KKRDB was established under Article 371(J) of the Constitution to address regional imbalance through targeted investments in infrastructure and asset creation, the increasing practice of routing routine departmental initiatives through the Board’s funds has drawn criticism in recent years.

However, the increasing dependence on KKRDB funds for implementing sectoral schemes raises questions about whether projects in the region are receiving adequate support from the State’s mainstream budgetary allocations. In many cases, the Board’s grants are used to finance projects that are otherwise funded through regular departmental budgets in other parts of the State.

A comparison with projects announced in other regions illustrates the contrast. For instance, regional centres of the Sri Jayadeva Institute of Cardiovascular Sciences and Research established in Hubballi and Mysuru have received direct allocations whereas the Jayadeva facility in Kalaburagi was constructed using KKRDB funds.

Despite more than a decade of constitutional backing through Article 371(J) and significant allocations through the KKRDB, the region continues to lag behind other parts of the State in several development indicators, including per-capita income and human development parameters.

With the State reiterating its commitment to the region through another ₹5,000-crore action plan, the key question remains whether the special development mechanism created under Article 371(J) is being used primarily to supplement development in the region or to substitute for regular sectoral spending.