Karnataka Chief Minister Siddaramaiah presented the state’s budget for the fiscal year 2025-26, outlining a total expenditure of ₹4,09,549 crore. The budget emphasizes agriculture, infrastructure development, welfare schemes, and fiscal discipline.

Budget Overview

• Total Expenditure: ₹4,09,549 crore
  • Revenue Expenditure: ₹3,11,739 crore
  • Capital Expenditure: ₹71,336 crore
  • Loan Repayment: ₹26,474 crore
• Fiscal Indicators:
  • Revenue Deficit: ₹19,262 crore (0.63% of GSDP)
  • Fiscal Deficit: ₹90,428 crore (2.95% of GSDP)
  • Total Liabilities: Projected at ₹7,64,655 crore (24.91% of GSDP)

Key Allocations and Initiatives

• Agriculture and Rural Development: ₹51,339 crore allocated, with plans to establish 6,000 small food processing units and 12,000 farm ponds under the Krishi Bhagya scheme. A Digital Agriculture Services Centre will be set up for advanced decision-making on crops, and ₹20 crore is allocated for organic and millet hubs.
• Infrastructure Development: An investment of ₹8,000 crore is earmarked for the Chief Minister’s Infrastructure Development Programme (CMIDP), focusing on minor irrigation, road networks, and urban infrastructure across all legislative assembly constituencies.
• Welfare Schemes: ₹51,034 crore allocated for the implementation of various guarantee schemes in the current financial year.
• Education and Skill Development: 500 new Karnataka Public Schools will be established with an investment of ₹2,500 crore. Pre-primary education will be expanded to 5,000 government schools, and honorariums for guest teachers and midday meal staff will be increased.
• Urban Development: Special focus on Bengaluru includes the construction of a double-decker flyover to ease traffic congestion and an additional building in Haj Bhavan to provide facilities for Haj pilgrims and their relatives.
• Minority Welfare: Grants worth ₹100 crore are earmarked for the comprehensive development of Jain, Buddhist, and Sikh communities, and ₹250 crore for the development of the Christian community. A Sannati Development Authority will be established in the ancient Buddhist center of Sannati in Chittapura taluka of Kalaburagi district.

Fiscal Discipline

The government has maintained fiscal discipline by keeping the fiscal deficit and total outstanding liabilities within the limits mandated under the Karnataka Fiscal Responsibility Act. Despite challenges such as the union government’s failure to fully compensate for GST revenue loss and lower tax devolution from the Fifteenth Finance Commission, Karnataka has managed its finances prudently.

Overall, the Karnataka Budget 2025-26 aims to balance economic development with social welfare, focusing on key sectors to promote inclusive growth and maintain fiscal responsibility.