The Karnataka Budget 2025-26, presented by Chief Minister Siddaramaiah, is a well-rounded financial plan aimed at boosting economic growth, developing infrastructure, and improving social welfare in the state. With a total outlay of ₹4.095 lakh crore, this budget prioritizes key areas like urban development, agriculture, education, and healthcare while ensuring fiscal stability.
Let’s take a closer look at the major highlights and growth strategies outlined in this year’s budget.
1. Economic Growth and Fiscal Overview
- GSDP Growth: Karnataka’s Gross State Domestic Product (GSDP) grew by 7.4%, outpacing the national average of 6.2%. The agriculture sector grew by 4%, showing positive momentum despite challenges like climate change and fluctuating commodity prices.
- Budget Outlay: The total budget size for 2025-26 is ₹4.095 lakh crore, a notable jump from last year’s ₹3.71 lakh crore, reflecting an increased focus on infrastructure and social programs.
- Revenue and Deficit: The state’s fiscal health remains stable, with a focus on enhancing revenue through taxation reforms and curbing unnecessary expenditures.
2. Infrastructure Development – Focus on Bengaluru and Beyond
Karnataka’s capital, Bengaluru, being a major economic hub, has received significant budgetary allocations for infrastructure projects.
- Bengaluru Development Fund: The city gets a ₹7,000 crore allocation, more than double last year’s ₹3,000 crore. This will go toward decongesting traffic, improving roads, and upgrading civic infrastructure.
- Brand Bengaluru Initiative:
- ₹1,800 crore is set aside for 21 urban projects under this initiative.
- A 40.5 km double-decker flyover worth ₹8,916 crore is planned to integrate with Namma Metro Phase-3, significantly improving connectivity.
- Road Expansion:
- 300 km of new roads will be built at a cost of ₹3,000 crore, utilizing canal buffer zones.
- BBMP (Bruhat Bengaluru Mahanagara Palike) will upgrade 460 km of arterial and sub-arterial roads with an allocation of ₹660 crore.
Beyond Bengaluru, the government has introduced the Chief Minister’s Infrastructure Development Program (CMIDP) with an allocation of ₹8,000 crore to ensure balanced development across Karnataka.
3. Agriculture and Rural Development
Farmers remain a key focus in this budget, with ₹51,339 crore allocated to the agricultural sector.
- Agricultural Loans: The government will distribute ₹28,000 crore in farm loans to 37 lakh farmers this year.
- Seed Bank for GI-Tagged Crops: To preserve Karnataka’s 20 Geographical Indication (GI)-tagged crops, a seed bank will be established, supporting traditional farming.
- Irrigation and Water Resources: New irrigation projects will be launched, ensuring better water supply for farming communities.
4. Urban Development and Transport
- Airport Development:
- Vijayapura Airport (₹348 crore) will be operational in 2025-26.
- Raichur Airport gets ₹53 crore.
- Mysuru Airport runway expansion will be carried out with a ₹319 crore allocation.
- Smart Cities and IT Corridors: Bengaluru will see further expansion of IT corridors and tech parks, promoting employment and innovation.
5. Education and Skill Development
Education has received a major boost, with a focus on improving quality and accessibility for students across Karnataka.
- Scholarships for SC Students:
- Students from Scheduled Castes (SC) will receive scholarships to study at 100 top national institutions.
- Moulana Azad Model Schools:
- 250 new English-medium schools will be set up under this initiative, with a ₹500 crore allocation (₹100 crore for this year).
- Women’s Colleges on Waqf Land:
- 15 new women’s colleges will be constructed in 2024-25, with 16 more planned for 2025-26.
6. Healthcare and Social Welfare
- Comprehensive Health Program:
- ₹413 crore will be spent over three years to implement advanced healthcare initiatives in Bengaluru, aiming to elevate the city to global health standards.
- Support for Minority Communities:
- Minority families will receive ₹50,000 financial assistance for low-cost weddings.
7. Cultural and Religious Initiatives
- Buddhist Study Academy:
- A Buddhist Study Academy will be established in Bengaluru, and the 100-year-old library at the Mahabodhi Study Centre will be digitized at a cost of ₹1 crore.
- Renaming of Bangalore City University:
- The university will now be called Dr. Manmohan Singh Bengaluru City University, in honor of the former Prime Minister.
8. Key Takeaways from Karnataka Budget 2025
Biggest-ever budget at ₹4.095 lakh crore, focusing on growth and welfare.
Massive investment in Bengaluru’s infrastructure, including flyovers, roads, and metro expansion.
Agriculture support with farm loans and ₹51,339 crore for rural development.
Education boost, including scholarships for SC students and new schools for minorities.
Healthcare expansion, with ₹413 crore earmarked for Bengaluru’s health system.
The Karnataka Budget 2025-26 aims to balance economic growth with social welfare, making significant investments in infrastructure, education, healthcare, and agriculture. With a strong focus on Bengaluru’s development, rural empowerment, and welfare schemes, the government is paving the way for a more prosperous and inclusive Karnataka.
