Karnataka Budget 2026–27: Working-Class Groups Await Relief as Siddaramaiah Prepares Record 17th Budget

Siddaramaiah is set to present the Karnataka State Budget 2026-27, and working-class communities across the state are closely watching for key announcements. Hotel employees, taxi and auto drivers, transport workers and small traders are hoping the budget will bring relief measures, new welfare schemes and solutions to several long-pending livelihood issues.

This will be Siddaramaiah's 17th budget as Chief Minister, the highest number presented by any leader in Karnataka's history. The milestone budget is drawing attention not only from political observers but also from economists tracking the state's finances and welfare spending priorities.

Working-Class Sectors Pin Hopes on Budget

Before finalising the Karnataka State Budget 2026-27, the Chief Minister held pre-budget consultation meetings with various industry bodies and workers' associations. Representatives from multiple sectors placed demands ranging from tax relief and regulatory changes to welfare schemes, housing and credit support.

The key question now is whether the government will meet these expectations immediately or postpone some of the demands, particularly those affecting workers who depend on daily income.

Hotel industry associations have urged the government to allow 24x7 operations for restaurants and eateries. They have also asked for simplified licensing procedures and tax relaxations. According to industry representatives, extended business hours could boost tourism, strengthen night-time economic activity and create additional employment, particularly in cities such as Bengaluru.

Transport Workers Seek Arrears and Pay Revision

Employees in the transport sector are expecting the Karnataka State Budget 2026-27 to address several pending service-related issues. Transport department staff have sought payment of 36 months of arrears, along with a pay revision from 2024.

Worker representatives say rising living costs and increasing work responsibilities have made a salary revision essential. They hope the government will announce a clear timeline for these payments in the upcoming budget.

Auto Drivers Demand Subsidies and Housing

Auto-rickshaw unions have also submitted a list of proposals ahead of the budget. Among their key demands is the continuation of the ban on bike taxis, which they argue affects their earnings.

Unions have also requested the creation of a Drivers' Development Corporation to support auto drivers and other transport workers. Other proposals include loans through existing caste-based corporations, 50% subsidy for electric autos, and dedicated housing colonies for drivers under government housing schemes.

Taxi Sector Pushes for Infrastructure and Welfare Board

Taxi drivers and owners are calling for improvements in road infrastructure through the Karnataka State Budget 2026-27. One of their major demands is the development of multi-level parking facilities every 100 kilometres along highways.

They have also proposed setting up a Driver Welfare and Safety Board to address issues such as accidents, long working hours and the lack of rest facilities during long-distance travel.

Budget Decisions Could Affect Thousands of Livelihoods

The expectations surrounding the Karnataka State Budget 2026-27 highlight how deeply policy decisions affect everyday livelihoods across the state. From hotel owners seeking extended operating hours to drivers asking for subsidies, arrears and housing support, multiple sectors are looking to the government for concrete action.

The final announcements in the budget will reveal how many of these demands are addressed and how the state plans to balance welfare commitments with fiscal discipline.