While presenting the budget, Karnataka Chief Minister Siddaramaiah claimed that the state government has maintained the state’s fiscal deficit for the financial year 2025-26.
The estimated total expenditure for the financial year 2025-26 is Rs 4,09,549 crore, including revenue expenditure of Rs 3,11,739 crore, capital bottom expenditure of Rs 71,336 crore and loan repayment of Rs 26,474 crore.
According to the budget of the Government of Karnataka, the revenue deficit for FY 2025-26 is estimated to be Rs 19,262 crore, which is 0.63 percent of the gross state domestic product (GSDP). The fiscal deficit is estimated to be Rs 90,428 crore, which is 2.95 percent of GSDP. The total liabilities are estimated to be Rs 7,64,655 crore at the end of 2025-26, which is 24.91 percent of GSDP.
The Chief Minister said, “We have maintained fiscal discipline in the financial year 2025-26 by keeping the fiscal deficit and total outstanding liabilities within the prescribed limit under the Karnataka Fiscal Responsibility Act.”
The Karnataka government has preferred infrastructure in the city of Bengaluru in this budget and has announced measures to deal with the traffic crowd in the city. In this budget, the annual grant of Rs 3,000 crore to be given to Bangalore city has been increased to Rs 7,000 crore in the current year.
Additionally, a new special purpose vehicle will be set up to use these grants and implement major development works on priority basis.
According to the budget, the Brihad Bengaluru Metropolitan Municipality (BBMP) has earned an additional revenue of Rs 4,556 crore through various reforms and adequate increase in property tax collection.
The government has given a guarantee of Rs 19,000 crore to the bright Bengaluru Municipalities (BBMP) for the construction of North-South and East-West corridor (tunnel) at a cost of Rs 40,000 crore.
Special attention has been paid to minorities in the state budget 2025-26. Students will be provided computer, smart boards and other necessary basic facilities to prepare SSLC exams through NIOS to provide religious education in madrasas as well as formal education.
Minority youth will be encouraged to start new start-ups through Karnataka Minority Development Corporation. An amount of Rs 150 crore has been provided for repairing and renovation and renovation of Waqf properties and infrastructure of Muslim cemeteries.
The Chief Minister further said, “An action plan of Rs 1,000 crore has been prepared under the ‘Chief Minister’s Minority Colony Development Program’. The works will be implemented in the financial year 2025-26.”
The government also announced the construction of an additional building at Haj Bhawan in Bangalore to provide facilities to Haj pilgrims and their relatives.
A grant of Rs 100 crore has been set for the overall development of Jain, Buddhist and Sikh communities. 250 crore rupees will be provided for the development of the Christian community.
A Sannati Development Authority will be established at the ancient Buddhist center Sannati at Chittapura taluka of Kalburgi district.
The honorarium given to the Jain priests, the main glands of Sikhs and the mosques of mosques will be increased to Rs 6,000 per month. The honorarium given to Assistant Granthi and Muzin has been increased to Rs 5,000 per month.
