Bengaluru (Karnataka) [India]: Karnataka Chief Minister Siddaramaiah, while presenting the state budget for the financial year 2025-26, stated that the government has successfully maintained fiscal discipline by keeping the fiscal deficit and total outstanding liabilities within the limits mandated by the Karnataka Fiscal Responsibility Act.
The total expenditure for FY 2025-26 is projected at Rs. 4,09,549 crores, which includes:
- Revenue expenditure: Rs. 3,11,739 crores
- Capital expenditure: Rs. 71,336 crores
- Loan repayment: Rs. 26,474 crores
According to the budget, the revenue deficit is estimated at Rs. 19,262 crores (0.63% of the Gross State Domestic Product or GSDP), while the fiscal deficit stands at Rs. 90,428 crores (2.95% of GSDP). The total liabilities at the end of FY 2025-26 are expected to be Rs. 7,64,655 crores, which is 24.91% of GSDP.
“By keeping fiscal deficit and total outstanding liabilities within the limits mandated under the Karnataka Fiscal Responsibility Act, we have maintained fiscal discipline,” said the Chief Minister.
Key Budget Highlights:
1. Infrastructure Development in Bengaluru:
- The yearly grant for Bengaluru city has been increased from Rs. 3,000 crores to Rs. 7,000 crores to address traffic congestion and boost infrastructure.
- A Special Purpose Vehicle (SPV) will be created to manage these grants and prioritize key developmental projects.
- Bruhat Bengaluru Mahanagara Palike (BBMP) generated an additional Rs. 4,556 crores through reforms and improved property tax collection.
- The state guaranteed Rs. 19,000 crores for BBMP to develop the North-South and East-West corridors (tunnels) at an estimated cost of Rs. 40,000 crores.
- To ease traffic, a 40.5 km double-decker flyover will be constructed at a cost of Rs. 8,916 crores, alongside the Namma Metro Phase-3 Project.
- 300 km of additional roads will be built using canal buffer zones at a cost of Rs. 3,000 crores.
- Development of 460 km of arterial and sub-arterial roads is planned at Rs. 660 crores, and 120 km of flyovers and grade separators will be constructed.
- Rs. 1,800 crores has been allocated for 21 schemes under the ‘Brand Bengaluru’ Plan to enhance the city’s global health standards, including a ‘Comprehensive Health Programme’ with a budget of Rs. 413 crores.
2. Welfare for Minority Communities:
- To integrate formal education with religious studies, computers, smart boards, and essential facilities will be provided in madrasas to help students prepare for the SSLC examination through NIOS.
- Minority youth will be encouraged to launch start-ups through the Karnataka Minority Development Corporation.
- Rs. 150 crores allocated for the repair and renovation of Waqf properties and the development of Muslim burial grounds.
- An Action Plan worth Rs. 1,000 crores has been prepared under the ‘Chief Minister’s Minority Colony Development Programme’ for FY 2025-26.
- Construction of an additional building in Haj Bhavan at Bengaluru to provide improved facilities for Haj pilgrims and their families.
3. Support for Other Communities:
- Grants worth Rs. 100 crores for the development of Jain, Buddhist, and Sikh communities.
- Rs. 250 crores allocated for the development of the Christian community.
- Establishment of Sannati Development Authority at the ancient Buddhist centre of Sannati in Chittapura taluka, Kalaburgi district.
- Enhancement of honorarium for religious leaders:
- Jain priests, Chief Grantis of Sikhs, and Pesh-Imams: Rs. 6,000 per month
- Assistant Granti and Muezzin: Rs. 5,000 per month
Conclusion:
The Karnataka Budget 2025-26 presents a balanced approach, focusing on infrastructure development, traffic management in Bengaluru, and welfare measures for minority communities. By maintaining fiscal discipline and enhancing allocations for key sectors, the state government aims to foster inclusive growth and economic stability.