Today, Chief Minister Siddaramaiah will present his 16th Karnataka budget in a historic twist of the state legislative history. The 2025-26 budget is expected to be over ₹4 lakh crore, higher than the ₹3.71 lakh crore budget provided for the ongoing fiscal year.
In the run-up to presenting the budget, Siddaramaiah stressed that the budget is not just an economics document; it is a strategy document for seven crore people living in the state. He was confident that the proposals would provide every citizen with the benefits of at least one government scheme. The Chief Minister held extensive consultations with cabinet ministers, top officials, farmer representatives, minority and backward-class organizations' representatives, and religious leaders to assimilate diverse views into the budget. One of the key areas of attention in this budget is likely to be the balancing act between investing in infrastructure projects and maintaining the government's five flagship guarantee schemes. In the 2024-25 budget, ₹52,000 crore was provided for these schemes, and there is expectation of sustained or enhanced funding in the next budget.
Opposition parties like BJP and JD(S) have demanded another ₹5 crore for developing every MLA's constituency. BJP state president and MLA B Y Vijayendra-led delegation, joined by Leader of Opposition R Ashok, approached the Chief Minister to place their demand. They also requested a grant of ₹50 crore in the 2025-26 state budget for infrastructure, road work, and basic amenities in all assembly constituencies.
The budget will also tackle the issue of striking a balance between development projects and increasing borrowings, which are estimated to go over ₹1.25 lakh crore. The government will borrow ₹3,500 crore from the World Bank to fund improvements in infrastructure to finance flood management, stormwater drainage, and drinking water projects.
Siddaramaiah will also make a mention of Karnataka's economic growth, the success of Invest Karnataka 2025, and the development model of the state in his budget speech.
The administration can even plan an increase in capital expenditure to clear charges from the opposition side of neglect of infrastructure works. Rural and urban local body elections are approaching, and henceforth, the budget is anticipated to make additional allocation for Scheduled Castes and Scheduled Tribes within the Special Component Plan (SCP) and Tribal Sub-Plan (TSP), besides special provisions for Kalyana Karnataka, mid-day meal staff, and smaller minority caste communities. The Chief Minister will lay the budget today at 10:15 a.m.
