Announcing the decision, state Chief Minister Siddaramaiah said the pending medical bills of Dey, amounting to Rs.25 lakh, would be settled by the state government.
`This is not just a gesture of our government, but a mark of respect to the great singer who had also sung a few songs for Kannada films,` he said at an award function on the occasion of the state's 58th formation day (Rajyothsava) celebrations here.
Dey, 94, died after a prolonged illness due to multi-organ failure at the privately-run Narayana Hospital on the city's outskirts where he was admitted in May for respiratory disease.
`As Kannadigas are known for gratitude, we pay our tributes to Dey who chose to be a resident of Bangalore in his old age,` Siddaramaiah added.
The state government has also decided to hold a musical night 'Naada Namana' soon in Bangalore as a tribute to the legend.