The Karnataka Budget for the 2025-26 financial year emphasises the development of “Brand Bengaluru,” with significant investment directed towards the city. A ₹27,000 crore plan was proposed to construct a 73 km road by renaming the long-delayed Peripheral Ring Road project as the ‘Bengaluru Business Corridor’. Additionally, several initiatives were announced to reduce traffic congestion.
CM Siddaramiah, who presented the State Budget for the 16th time, said, “Our Government gives priority to basic infrastructure in Bengaluru which makes a major contribution to the State’s economy. The yearly grant of ₹3,000 crore will be enhanced to ₹7,000 crore in the current year. A new Special Purpose Vehicle will be established to utilise these grants and implement major developmental works on priority,” adding that ₹1,800 crore was set aside for the “Brand Bengaluru” plan for 21 schemes during the FY 24-25.
Urban Development and Infrastructure Expansion
Recognising Bengaluru as the largest contributor to the State’s exchequer, the government has outlined ambitious projects to improve infrastructure, service delivery and traffic management under the ‘Brand Bengaluru’ initiative. Efforts are being made to reduce pressure on the capital city by developing second and third-tier cities.
A key project announced was the renaming and revival of the long-pending Peripheral Ring Road project as the ‘Bengaluru Business Corridor.’ A ₹27,000-crore plan has been drafted to construct this 73 km road, with assistance from HUDCO Bank, and land acquisition is already underway.
A Bengaluru Signature Park will be developed in Devanahalli across 407 acres, with ₹50 crore already released under the State government funds to provide connectivity to this area for building a flyover.
To encourage EV manufacturing and usage, a testing track of international standards and an EV cluster with common infrastructure will be established in Bengaluru Zone for ₹25 crore.
Taiwan-based electronics manufacturer Foxconn has started a mobile phone manufacturing plant in the Devanahalli Industrial Area with a capital investment of ₹21,911 crore. This company will be provided with an incentive of ₹6,970 crore by ESDM, the CM announced.
Alongside this, a Japanese Industrial Park will be established at the Tumkur Industrial Node as part of the Chennai-Bengaluru Industrial Corridor project. The World Expo in Osaka, Japan will be leveraged as a platform to attract further investments to the State.
A Quantum Research Park Phase-2 will be set up with a grant of ₹48 crore over the next three years in collaboration with the Indian Institute of Science (IISc) to promote the development of quantum technology. The government also said it will allot ₹57 crore to reconstruct the Bengaluru Bio-Innovation Center, which was severely damaged in a fire disaster.
The Bengaluru Majestic bus stand will be redeveloped under the Project Majestic scheme under the public-private partnership model. The plan includes the construction of a transport hub integrated with a commercial complex.
Traffic Management and Namma Metro Expansion
To ease traffic congestion and improve movement, the government has announced plans to transform the city’s major roads into signal-free corridors. As part of this initiative, a 40.5 km double-decker flyover will be constructed at a cost of ₹8,916 crore, alongside Namma Metro Phase-3. Additionally, a 300 km road network will be developed for ₹3,000 crore using canal buffer zones. The BBMP’s arterial and sub-arterial road network spanning 460 km will be upgraded at a cost of ₹660 crore, while 120 km of flyovers and grade separators will be built across Bengaluru to enhance connectivity.
Namma Metro has around 8.5 lakh daily commuters. While presently, it is operating 68 stations along 79.65 km of the rail network, 98.60 km of additional routes will be added to the network in the next two years, extending it to Devanahalli.
The Bengaluru Suburban Railway Project, consisting of 148 km length of rail network and 58 railway stations, will be implemented for . ₹15,767 crore. Works for two corridors of the total four corridors is in progress.
A new satellite bus stand will be constructed at KR Puram in the Bengaluru East zone on a public-private partnership model. Additionally, a new satellite market will be developed on Bengaluru’s outskirts to address the growing vehicular congestion in the city’s market committees.
Environmental and Lake Rejuvenation Efforts
Under the ‘Brand Bengaluru – Green Bengaluru’ umbrella, works related to 14 lakes are under progress through BBMP for ₹35 crore. The rejuvenation of the Varthur and Bellandur Lakes has been taken up by the BDA for ₹234 crore.
As part of the disaster mitigation programme, the Minor Irrigation Department will undertake 41 lake-filling projects in Bengaluru Rural District at a cost of ₹250 crore. Additionally, stormwater drains will be rebuilt, and lakes in Bengaluru city will be rejuvenated with an investment of . ₹239 crore.
Cultural, Religious, and Sports Development
An additional building will be constructed at Haj Bhavan in Bengaluru to enhance facilities and amenities for Haj pilgrims and their families.
A Buddhist Study Academy will be set up in the city to promote research and education in Buddhist philosophy. Additionally, the 100-year-old library at the Mahabodhi Study Centre will be digitized and upgraded for ₹1 crore.
To boost sports infrastructure in the State, a District Stadium will be developed on 20 acres of land in Adinarayana Hosahalli, Bengaluru Rural District.
A multiplex movie theater complex will be developed under a Public-Private Partnership (PPP) model on 2.5 acres of land owned by the Karnataka Film Academy in Nandini Layout, Bengaluru to support the entertainment industry and provide a modern cinematic experience.
“No help from Centre”
CM Siddaramaiah also highlighted during his speech that the 15th Finance Commission had recommended a special grant of ₹5,495 crore to the State for a reduction in its share in devolution, with a special grant of ₹3,000 crore for lake development in Bengaluru and ₹3,000 crore for developing the Peripheral Ring Road, totalling .₹11,495. However, the Central Government is yet to release any grant, he said.