Last Updated:March 06, 2026, 18:03 IST

Recognising Bengaluru as both a global startup hub and a land of immense aspiration, the government has maintained an aggressive development grant of Rs 7,000 crore

Addressing the city’s burgeoning population of 1.40 crore, the government has formalised the Cauvery Phase VI project. File image

The Karnataka State Budget for 2026-27 has unveiled a transformative financial roadmap for Bengaluru, aimed at elevating the state capital into a “world-class liveable city.” Recognising the metropolis as both a global startup hub and a land of immense aspiration, the government has maintained an aggressive development grant of Rs 7,000 crore. This sustained investment seeks to address the twin challenges of urban sprawl and traffic congestion that have long shadowed the city’s rapid economic rise.

The Rs 40,000 Crore Subterranean Shift

In perhaps the most ambitious infrastructure proposal in the city’s history, the government has approved a 40 km tunnel road network. Designed to cut through the city’s densest areas, the network will feature north-south and east-west corridors at an estimated cost of Rs 40,000 crore.

The project will be executed under a Build-Own-Operate-Transfer (BOOT) model, with the first phase—a 17 km stretch of the North-South corridor—already moving toward implementation. Tenders for this initial phase have been invited at a cost of Rs 17,780 crore. This subterranean strategy is complemented by the Bengaluru Business Corridor Phase-1, a 73 km stretch connecting Tumakuru Road to Hosur Road, which the government aims to complete within four years.

Scaling Mass Transit and Pedestrian Access

“Namma Metro” continues its trajectory as India’s second-largest network. The budget proposes the completion of an additional 41 km of metro lines within the current financial year, a milestone expected to push daily ridership to 15 lakh commuters. Notably, the government highlighted a significant fiscal imbalance in the project’s funding, pointing out that the state has shouldered 88% (Rs 59,376 crore) of the total expenditure to date, compared to the central government’s 12% contribution.

To bridge the gap between mass transit and the “last mile”, a new 9 km pedestrian walkway will be constructed along the Outer Ring Road (ORR) metro viaduct. This Rs 160 crore initiative is a landmark partnership with the Outer Ring Road Companies Association, reflecting a new model of corporate-government collaboration in urban design.

Durability and Urban Aesthetics

The budget moves away from quick-fix road repairs towards long-term durability. Over the next three years, the government plans to white-top more than 450 km of roads at a cost of Rs 3,000 crore. The urban experience will be further enhanced through:

• The beautification of 175 major junctions.
• The construction of 100 new skywalks.
• The renovation of 500 km of footpaths using city corporation resources.
• An investment of Rs 450 crore to upgrade the Silk Board to KR Puram corridor into a global-standard thoroughfare.

Water Security and Environmental Resilience

Addressing the city’s burgeoning population of 1.40 crore, the government has formalised the Cauvery Phase VI project. Assisted by JICA, this Rs 6,939 crore initiative will secure an additional six TMC of drinking water. To mitigate the recurring threat of urban flooding, Rs 2,000 crore has been earmarked for storm water drain upgrades under a World Bank-assisted programme. The city’s long-term growth will be guided by the Revised Master Plan-2041, scheduled for completion by late 2027.

Sports and Cultural Landmarks

In a move to bolster Bengaluru’s status as a sporting and cultural capital, the budget announced two massive landmark projects:

Anekal Cricket Stadium: A new, state-of-the-art 80,000-seater cricket stadium will be built in Anekal, significantly expanding the city’s capacity for international sporting events.

Malleswaram Convention Centre: A world-class convention centre will be developed on land owned by the Mysore Lamp Works in Malleswaram under a Public-Private Partnership (PPP) model.

By combining deep-tunnel engineering with massive mass transit expansion and environmental safeguards, the 2026-27 budget represents a definitive attempt to future-proof Bengaluru against the pressures of its own success.

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