Karnataka Raises Official Car Purchase Limit for Ministers, MPs to Rs 31 Lakh

The Karnataka government has increased the price ceiling for purchasing new official vehicles for ministers and Members of Parliament (MPs) from Rs 26 lakh to Rs 31 lakh, allowing eligible representatives to opt for more expensive vehicles under the revised procurement rules. The order, issued by the Department of Personnel and Administrative Reforms (DPAR) on October 8, raises the maximum permitted purchase price by Rs 5 lakh, or approximately 19.2 per cent. The revised limit includes GST and is calculated on the vehicle's ex-showroom price.

The revised ceiling represents the maximum permitted purchase price, not a minimum spending requirement. Ministers and MPs can purchase vehicles costing less than Rs 31 lakh, while vehicles exceeding the ceiling would ordinarily require an applicable exception or separate approval, if permitted under the rules.

The revision follows the Finance Department's concurrence on September 30, 2026, and updates the previous limit established in 2022. The earlier ceiling was Rs 23 lakh ex-showroom, equivalent to Rs 26 lakh inclusive of GST. Reports quoting officials cite rising vehicle prices and requests for more expensive models as reasons for the change. Proposals exceeding the earlier limit reportedly required separate Finance Department approval.

The government has advised ministers and MPs to select vehicles offering better fuel efficiency and lower maintenance costs, highlighting the need to consider operating expenses alongside the initial purchase price.

Under existing rules, ministers are eligible for replacement vehicles after three years or upon completing one lakh kilometres, whichever comes first. The revision does not mean every eligible representative must immediately receive a new vehicle.

Karnataka also maintains separate purchase ceilings for government officials. Under the 2022 rules, additional chief secretaries, principal secretaries, secretaries and secretary-rank department heads were permitted to purchase vehicles costing up to Rs 20 lakh. The ceiling was Rs 18 lakh for deputy commissioners, zilla panchayat chief executive officers, district police superintendents and district and sessions judges. Other specified district-level officials, including assistant commissioners and deputy superintendents of police, had a limit of Rs 12.5 lakh.

The decision comes amid concerns over the state's fiscal priorities. Karnataka has estimated drought-related losses of approximately Rs 46,000 crore across 177 taluks and sought around Rs 10,000 crore in central assistance. However, no direct link has been established between vehicle expenditure and drought-relief funding.

The financial impact of the revision will depend on the number of vehicles purchased and their actual prices. Transparency in procurement and monitoring fuel and maintenance expenses will remain important to ensure value for public money.