Karnataka Chief Minister Siddaramaiah presented the state budget for the financial year 2025-26 on Friday in the Karnataka Assembly, marking his 16th budget presentation. With a total outlay of ₹4.09 lakh crore, this budget is the highest in the state’s history, reflecting a significant increase from last year’s ₹3.71 lakh crore.
The budget emphasises fiscal discipline, infrastructure development, welfare schemes, and economic growth, with a particular focus on transforming Bengaluru and supporting marginalised communities.
Key Financial Overview
The total estimated expenditure for 2025-26 stands at ₹4,09,549 crore, comprising:
Revenue Expenditure: ₹3,11,739 crore
Capital Expenditure: ₹71,336 crore
Loan Repayment: ₹26,474 crore
Major Highlights
Bengaluru, the state’s economic powerhouse, received significant attention with annual grants of ₹7,000 crore allocated for city development, up from ₹3,000 crore. The budget also earmarked ₹1,800 crore for 21 projects under ‘Brand Bengaluru Initiative’to enhance infrastructure and livability. The city will get a 40.5 km double-decker flyover at ₹8,916 crore alongside Namma Metro Phase-3 to ease congestion. Also, a ₹413 crore comprehensive health programme will be implemented over three years to elevate Bengaluru to global health standards.
Welfare and Guarantee Schemes
The budget continues to prioritise the Congress government’s five guarantee schemes with an allocation of ₹51,034 crore for these schemes. For minority welfare, it has a provision of ₹1,000 crore for the Chief Minister’s Minority Colony Development Programme, ₹250 crore for the Christian community, ₹100 crore for Jain, Buddhist, and Sikh communities, and additional funding for Urdu schools, Waqf properties, and Haj Bhavan expansion in Bengaluru.
Infrastructure and Industry
With an eye on state’s economic growth, the budget made a provision of ₹13,692 crore committed to subsidies and financial assistance to attract large investments. Redevelopment of Kempegowda bus stand under a public-private partnership (PPP) model, doubling of 70 km railway lines (₹406 crore state contribution), and addition of electric and diesel buses are some of the key infrastructure projects.
Agriculture and Education
The budget allocated, ₹51,339 crore for the farming sector, up from ₹44,000 crore last year, with plans for a new Agricultural University in Mandya and micro-irrigation expansion. For rural infrastructure, the budget has a provision of ₹7,145 crore for the Agriculture Department. The government has also allocated ₹2,500 crore (with Asian Development Bank support) for new Karnataka Public Schools.
