/newsfirstprime/media/media_files/2026/03/05/siddaramaiah-session-2025-12-19-11-34-22-2026-03-05-13-17-51.webp)
Bengaluru - Karnataka Chief Minister Siddaramaiah has presented his 17th state budget, charting a total expenditure of approximately ₹4.49 lakh crore. This marks a notable increase from the previous fiscal year's ₹4.09 lakh crore, signaling a significant push in state spending. The budget projects a revenue deficit of ₹22,957 crore, an uptick from the ₹19,262 crore estimated for the current fiscal. Total receipts are pegged at ₹4,47,240 crore, factoring in gross borrowings of ₹1,32,000 crore and non-debt capital receipts of ₹190 crore.
The state's fiscal path is charted with a projected revenue deficit of ₹22,957 crore, exceeding last year's ₹19,262 crore, even as total expenditure is set to reach an ambitious ₹4.49 lakh crore. This considerable outlay is financed, in part, by a substantial borrowing of ₹1,32,000 crore.
WELFARE SCHEMES FORM A SIGNIFICANT CHUNK OF SPENDING
A substantial portion of the allocated funds is earmarked for key welfare initiatives. The 'Gruha Lakshmi' scheme, providing financial assistance to women heads of households, has been allocated a significant ₹34,243.39 crore. The 'Gruha Jyothi' program, offering subsidized electricity, receives ₹10,578 crore. For the unemployed youth, the 'Yuvanidhi' unemployment assistance scheme is allotted ₹718.18 crore.
Beyond these flagship programs, the budget outlines targeted provisions for various communities. Minority communities are set to benefit from the upgrade of 117 Maulana Azad Model Schools and Urdu Schools into Karnataka Public Schools, at a cost of ₹600 crore. Further allocations include ₹100 crore for the development of Jain, Buddhist, and Sikh communities, and an additional ₹400 crore for upgrading another 100 schools in a subsequent phase. Economically weaker minority students will receive laptops worth ₹50,000 each, with 5,000 such beneficiaries planned.
INFRASTRUCTURE AND ECONOMIC DEVELOPMENT GET ATTENTION
The budget also signals investments in infrastructure and future economic models. The mining sector is expected to contribute an additional ₹3,000 crore to ₹4,000 crore in the next fiscal. For infrastructure development, ₹1,593 crore is designated for the development of seven airports, with ₹200 crore earmarked for the current year. The Outer Ring Road upgrade is slated to receive ₹450 crore.
The budget highlights a focus on innovation and emerging economic paradigms. The 'AI in focus' initiative suggests a drive towards technological advancement, with seven new initiatives proposed to boost the artificial intelligence sector. The budget also touches upon broader economic concepts, including initiatives for the 'gig economy', 'geographical equality', a 'global trade economy', a 'tourism-driven economy', a 'green economy' promoting renewable energy, and a 'growing urban economy'.
SCHOOLS AND EDUCATION RECEIVE FUNDING BOOST
The education sector is slated for considerable financial support. A grant of ₹125 crore is designated for the maintenance of government primary schools, high schools, and Pre-University Colleges. The upgrade of 800 schools to Karnataka Public Schools (KPS) will incur an expenditure of ₹3,900 crore. Further provisions include ₹565 crore for new construction and repairs in educational institutions, ₹75 crore for toilet construction, and ₹25 crore for furniture procurement.
FISCAL PERFORMANCE AND REVENUE CONSIDERATIONS
Despite the substantial spending, the state maintains a narrative of strong fiscal performance and revenue mobilization capacity. However, the projected increase in the revenue deficit indicates ongoing fiscal pressures. The state continues to advocate for robust revenue protection programs and adequate compensation from the Union Government concerning GST rationalization. Suggestions to the 16th Finance Commission regarding the reward for fiscal performance and contribution to the national economy have also been noted.
Background:
Chief Minister Siddaramaiah's presentation marks his 17th budget, placing him among the most prolific finance heads in India, surpassing notable figures like K M Mani of Kerala and former Karnataka CM Ramakrishna Hegde, who each presented 13 budgets. Siddaramaiah also holds the record for the longest-serving Chief Minister of Karnataka, having recently surpassed D Devaraj Urs.
The fiscal situation has been shaped by revenue deficit trends, with the previous fiscal year's budget size standing at ₹4.09 lakh crore. Discussions around potential fuel cess hikes and the expansion of welfare programs have also been part of the budget's context.