Karnataka Government Requests Increased Grants for Infrastructure Projects in Union Budget
As India prepares for the presentation of the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman, Karnataka’s Congress-led government is hoping for an increase in central grants to fund critical infrastructure projects. Chief Minister Siddaramaiah and Deputy CM D K Shivakumar have submitted a comprehensive list of demands to the Centre, emphasising the urgent need for financial support to address the growing infrastructure needs of the state, particularly in Bengaluru.
Among the key requests is a special grant for Bengaluru, which continues to face major challenges related to its rapid urbanisation, traffic congestion, and infrastructure deficits. The state government is seeking Rs 11,495 crore in grants under the 15th Finance Commission and the release of Rs 5,000 crore for the Upper Bhadra project, which was previously announced.
Bengaluru, the state’s economic and technological hub, is at the forefront of Karnataka’s demands. The government has raised concerns over the city’s worsening traffic problems and has proposed the development of an extensive network of tunnels and flyovers to ease congestion. One such project includes an 18.5 km tunnel road connecting Esteem Mall in Hebbal to Silk Board Junction at an estimated cost of Rs 15,000 crore. Another major project involves a 28.5 km tunnel road from KR Pura to Nayandahallii junction, projected to cost Rs 25,000 crore. These proposed tunnel roads are seen as essential for streamlining traffic flow in the city’s busy corridors. Additionally, Karnataka is seeking central assistance for the Metro phase-4 project, which will connect JP Nagar to Hebbal, including a double-decker flyover. The state is requesting Rs 8,916 crore for this project, which is crucial for addressing Bengaluru’s growing public transport needs. To complement this, the government is asking for funding to construct 17 flyovers at 11 junctions across the city, estimated at Rs 12,000 crore, to further reduce traffic congestion.
Beyond Bengaluru, Karnataka has also made demands for the development of key infrastructure projects in other parts of the state. These include a Rs 3,000 crore initiative to improve 300 km of roads where encroachments have been cleared from buffer zones of rajakaluves and major lakes. Additionally, the state has requested assistance for the construction of a 73.05 km, eight-lane business corridor at an estimated cost of Rs 27,000 crore, including Rs 21,000 crore for land acquisition. Another crucial request is for the Cauvery Stage-6 project, which aims to bring 500 million litres per day (MLD) of water to Bengaluru, addressing the city’s growing water scarcity issues. The Karnataka government is hopeful that these requests will be met in the upcoming Union Budget, as the state continues to face immense pressure to modernise its infrastructure and meet the demands of its rapidly growing population.
In addition to these large-scale infrastructure projects, the state has also made demands for increased central support for social welfare initiatives. These include raising the central share for the pension scheme and housing under the Pradhan Mantri Awas Yojana, increasing the honorarium for ASHA and anganwadi workers, and raising GST compensation. As Bengaluru and other parts of Karnataka grapple with challenges posed by rapid urbanisation, traffic, and infrastructure gaps, the state’s government is urging the Centre to address these pressing needs through increased funding and timely approvals. With the upcoming Union Budget set to be a defining moment for Karnataka’s infrastructure future, the state’s hopes for financial support could be critical to unlocking the next phase of urban development and growth.
