Karnataka CM Siddaramaiah unveils ₹4.09 lakh crore budget for 2025, focusing on development, welfare, and key sectors like education, healthcare, and infrastructure.
On March 7, 2025, Karnataka Chief Minister Siddaramaiah presented the state’s budget for the fiscal year 2025-26, marking his 16th budget presentation. The budget, exceeding ₹4 lakh crore, emphasizes social welfare, infrastructure development, and economic growth, reflecting the government’s commitment to fulfilling its electoral promises while addressing the state’s developmental needs.
Budget Overview
The total outlay for the 2025-26 fiscal year stands at ₹4.095 lakh crore. A significant portion, ₹51,034 crore, is allocated to implement the five ‘guarantee’ schemes promised by the Congress government during the elections. These schemes aim to provide financial assistance and social security to various sections of society.
Key Allocations and Initiatives
- Bengaluru Development: The budget allocates ₹7,000 crore for the development of Bengaluru, with ₹1,800 crore earmarked for 21 projects under the ‘Brand Bengaluru’ initiative. This initiative focuses on enhancing the city’s infrastructure and global image.
- Social Welfare:
- SC/ST Welfare: An allocation of ₹42,018 crore is made for the welfare of Scheduled Castes and Scheduled Tribes, aiming to uplift these communities through various developmental programs.
- Minority Welfare: The budget proposes ₹1,000 crore for minority welfare programs, including the development of Waqf properties, support for Urdu schools, and financial aid for weddings. Additionally, a 4% reservation in government contracts under Category-II B is introduced for Muslims.
- Agriculture and Rural Development: The farming sector receives an allocation of ₹51,339 crore, underscoring the government’s commitment to supporting farmers and enhancing rural infrastructure.
- SC/ST Welfare: An allocation of ₹42,018 crore is made for the welfare of Scheduled Castes and Scheduled Tribes, aiming to uplift these communities through various developmental programs.
- Infrastructure and Transportation:
- Bengaluru Metro Expansion: Plans are underway to extend the Bengaluru Metro to connect the airport, aiming to improve urban mobility and reduce traffic congestion.
- Clean Mobility Initiatives: The state plans to implement tax waivers and financial incentives to promote the clean mobility sector, including significant tax cuts for hybrid cars. This move is especially beneficial for companies like Toyota, which has been advocating for such incentives.
- Bengaluru Metro Expansion: Plans are underway to extend the Bengaluru Metro to connect the airport, aiming to improve urban mobility and reduce traffic congestion.
- Entertainment and Culture: To make cinema more accessible, the government has capped movie ticket prices in all theatres at ₹200.
Global Capability Centers (GCCs): Karnataka aims to double the number of GCCs to 1,000 by 2029, creating 350,000 new jobs. Incentives include rent reimbursements, patent fee waivers, and electricity tax exemptions, depending on employment generation. The policy also plans to establish three new tech parks and fund skill development courses, particularly in artificial intelligence.
Political Reactions
The budget has elicited mixed reactions:
- Congress: Leaders have hailed the budget as “historic,” highlighting that this is the first time the allocation has crossed ₹4 lakh crore. They emphasize the government’s focus on fulfilling its guarantees and prioritizing infrastructure development.
BJP: The opposition has criticized the budget, labeling it a “scam” and accusing the Congress of vote-bank politics. They point to allocations for the Muslim community, including reservations in government contracts, as instances of appeasement. BJP leaders argue that such provisions are unconstitutional and undermine the rights of SCs, STs, and OBCs.
Economic Implications
The budget reflects a balancing act between welfare schemes and developmental projects:
- Fiscal Responsibility: With a significant portion allocated to welfare schemes, concerns arise about the state’s fiscal health. However, the government maintains that these expenditures are necessary for social equity and long-term growth.
- Investment Promotion: By offering incentives for clean mobility and GCCs, Karnataka aims to attract substantial investments, potentially boosting employment and economic diversification.
- Urban Development: The focus on Bengaluru’s development, particularly through the ‘Brand Bengaluru’ initiative and metro expansion, aims to enhance the city’s global competitiveness and livability.
Conclusion
Karnataka’s 2025-26 budget underscores the government’s commitment to social welfare, infrastructure development, and economic growth. While the ambitious allocations aim to fulfill electoral promises and drive development, the challenge lies in effective implementation and maintaining fiscal prudence. The mixed political reactions highlight the complexities of balancing diverse interests in governance. As the state moves forward, the real impact of these budgetary provisions will be measured by their execution and the tangible benefits delivered to its citizens.
Source: Thehindubusinessline
Also Read Tejasvi Surya Ties the Knot : HERE