Karnataka’s budget outlay has for the first time crossed ₹4 lakh crore. In his sixteenth budget Chief Minister Siddaramaiah offered on Friday (March 7, 2025) for the fiscal 12 months 2025-26, the complete budget outlay has been estimated to be ₹4,09,549 crore. However, this budget has additionally been a income deficit budget, like the earlier 12 months’s budget. The income deficit has been pegged at ₹19,262 crore — down from ₹27,354 crore in 2024-25.
The complete income receipts is estimated to be ₹2,92,477 crore, of which ₹2,08,100 is the State’s personal tax revenues, ₹16,500 crore non-tax revenues and Government of India receipts is ₹67,877 crore. The gross borrowings is pegged at ₹1,16,000 crore.
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The budget outlay consists of income expenditure of ₹3,11,739 crore, capital expenditure of ₹71,336 crore — up from ₹55,877 crore in 2024-25 — and mortgage reimbursement of ₹26,474 crore. This primarily reveals that the loans being raised will not be solely getting used for capital expenditure, but additionally for mortgage reimbursement and income expenditure.
Saying that the State has been going through fiscal challenges resulting from lower in tax devolution to Karnataka from the Centre, Mr. Siddaramaiah stated that his authorities had allotted ₹51,034 crore for implementation of the 5 assure schemes this 12 months and managed the ensures ‘within the prudent fiscal deficit norm of 3% of Gross State Domestic Product (GSDP) and debt-GSDP ratio of 25% for the last two budgets’.
For the monetary 12 months 2025-26, income deficit of ₹19,262 crore is 0.63% of GSDP, fiscal deficit of ₹90,262 crore is 2.95% of GSDP and complete liabilities of the State at the finish of 2025-26 is estimated to be ₹7,64,655 crore, which is 24.91% of GSDP. Thus, the budget has remained inside permissible limits of the Karnataka Fiscal Responsibility Act, 2002.
Karnataka Chief Minister Siddaramaiah arrives to current the state Budget 2025-26, in Bengaluru on March 7, 2025.
| Photo Credit:
CMO
Growth fee of State quicker than the nation’s
The economic system of Karnataka (GSDP) grew at 7.4% in 2024-25, outpacing the nationwide progress fee of 6.4%, Mr. Siddaramaiah stated in his budget speech. Karnataka has contributed 8.4% to the nationwide GDP in the identical 12 months.
Following a 12 months of drought in 2023-24 when the agriculture sector shrunk by 4.9%, the agriculture sector in the State has recorded a progress fee of 4% outpacing the nationwide progress fee of three.8%. While the State Government had allotted ₹44,000 crore to numerous departments for farmer welfare schemes, this 12 months it has gone as much as ₹51,339 crore.
The industrial sector has registered a progress fee of 5.8% in 2024-25. Through the new Industrial Policy 2025-30, the State goals to attain a 12% industrial progress fee and creation of 20 lakh jobs by 2030, the Chief Minister stated. In order to draw giant investments, the authorities has dedicated to monetary help and subsidies totalling ₹13,692 crore in 2025-26.
The companies sector, which has a whopping 66% share of Karnataka’s economic system, has achieved a progress fee of 8.9%, outpacing the nationwide progress fee of seven.2%. The authorities has applied a number of new insurance policies in numerous service sectors, like Information Technology, Biotechnology, Tourism and others, to advertise financial progress. These insurance policies are anticipated to generate ₹1 lakh crore investments, and the authorities has dedicated to ₹3,500 crore subsidies and monetary help for 2025-26.
The State has attracted $4.4 billion of international investments by the finish of December 2024, rating third in India.
Published – March 07, 2025 12:32 pm IST
