When Karnataka Chief Minister Siddaramaiah presented his record 17th state Budget, one city dominated the spending blueprint: Bengaluru.
India’s technology capital is grappling with two chronic urban ailments synonymous with the city’s daily life — traffic congestion and flooding. In response, the 2026-27 Karnataka Budget outlines a sweeping package of infrastructure investments spanning tunnel roads, metro expansion, suburban rail, stormwater upgrades and even a second airport.
CM Siddaramaiah said the aim is to transform Bengaluru into “the world’s most liveable city”.
The budget attempts something larger than routine civic spending. It sketches a long-term infrastructure reset that could reshape how India’s biggest technology metropolis moves, grows and survives its monsoons.
Rs 40,000-cr bet on underground roads
At the heart of the mobility push are two massive tunnel road corridors designed to bypass the city’s clogged surface roads.
The government has approved two underground corridors covering roughly 40 km at an estimated Rs 40,000 crore. This will be executed under the Build-Own-Operate-Transfer (BOOT) model, a public-private partnership framework in which private firms build and operate the infrastructure before eventually transferring ownership to the government.
The corridors include a North-South tunnel from Hebbal Junction to HSR Layout’s Silk Board and an East-West tunnel from KR Puram to Mysore Road.
If implemented successfully, the project could dramatically shorten commute times between key technology and residential hubs that currently suffer some of India’s worst traffic bottlenecks.
The budget also includes a tunnel and elevated road between Hebbal Junction and Mekhri Circle, to be built by the Bengaluru Development Authority at Rs 2,250 crore.
Road upgrades to unclog Bengaluru’s surface network
Alongside tunnels, the state government has proposed major upgrades to existing road infrastructure.
One key project will transform the Outer Ring Road stretch between Silk Board Junction and KR Puram Metro Station into a global-standard corridor at a cost of Rs 450 crore. The stretch cuts through Bengaluru’s technology corridor, home to dozens of multinational companies and thousands of daily commuters.
Key road investments include:
- 158 km of roads to be white-topped at a cost of Rs 1,700 crore
- 450 km of roads to be white-topped over the next three years at Rs 3,000 crore
- 175 traffic junctions to be redesigned and beautified
- 500 km of footpaths to be upgraded
- 100 skywalks to be built across the city within three years
The combination of pedestrian infrastructure and junction redesign aims to improve traffic flow while making the city more walkable.
Metro expansion and suburban rail to reshape mobility
Mass transit remains central to Bengaluru’s long-term mobility strategy. Namma Metro currently operates a 96-km network serving roughly one million passengers daily.
The government plans to complete 41 km of additional metro lines in 2026-27, further extending coverage into fast-growing suburbs.
A 9-km pedestrian walkway along the metro viaduct on the Outer Ring Road will also be built at a cost of Rs 160 crore.
Meanwhile, the Bengaluru Suburban Railway Project is progressing with land acquisition completed for Corridor 2 (Benniganahalli–Chikkabanavara) and ongoing for Corridor 4 (Heelalige–Rajanukunte).
The state has allocated Rs 500 crore this year, with the suburban rail network targeted for completion by December 2030.
In addition, the Baiyappanahalli-Hosur and Yeshwanthpur-Channasandra railway doubling project is underway at Rs 812 crore, of which the state is contributing Rs 406 crore.
Together, metro and suburban rail expansions are intended to shift commuters away from cars and two-wheelers.
Tackling Bengaluru’s flooding crisis
Traffic is only half the problem. Each monsoon, several Bengaluru neighbourhoods experience severe flooding, largely due to encroached lakes, blocked stormwater drains and unplanned construction.
The budget therefore proposes a series of investments in water infrastructure.
A Cauvery Phase-VI water supply project worth Rs 6,939 crore, supported by the Japan International Cooperation Agency (JICA), will supply six additional TMC of water to the city.
Currently, Bengaluru receives about 2,225 million litres per day (MLD) through earlier Cauvery phases.
Stormwater management will also see significant upgrades:
- Primary stormwater drains and lake development works: Rs 273 crore
- Drainage improvements under the World Bank-backed Karnataka Water Security and Disaster Resilience Programme: Rs 2,000 crore
In addition, the state has announced a five-year disaster management programme worth Rs 5,000 crore specifically aimed at addressing flooding in Bengaluru.
Health, housing and social infrastructure
Beyond roads and transport, the budget also outlined investments in healthcare, education and social welfare facilities.
Among the key initiatives is a 1,000-bed charitable super-speciality hospital at the Rajiv Gandhi Institute of Chest Diseases in partnership with the Azim Premji Foundation. Apart from that, a regional centre of the Sri Jayadeva Institute of Cardiovascular Sciences and Research at the BBMP hospital in Govindarajanagar and new IVF centres at Vani Vilas Hospital and Gulbarga Medical College have also been announced in the budget.
The budget also includes working women’s hostels, student hostels, digital libraries for competitive exam aspirants and minority training centres.