Siddaramaiah Presents ₹3.71 Lakh Crore Karnataka Budget Focused on Welfare and Development

Chief Minister Siddaramaiah presented his 15th revenue-deficit Karnataka budget for the state at Vidhan Soudha in Bengaluru today. While presenting his more than three hour long budget speech the CM said that the budget is an articulation of the Karnataka Model, based on the principles of social justice. Siddaramaiah, who also holds the Finance portfolio, in a budget speech said that the State budget had gone into revenue deficit during the pandemic years, but had recovered and became revenue surplus in 2023. It is pertinent to mention that the total outlay of the Karnataka State budget for 2024-25 is pegged at ₹3,71,383 crore, as against a revised estimate of ₹3,12,708 crore for 2023-24. While the Chief Minister has not increased any taxes, he has presented a revenue deficit budget. CM Siddaramaiah announced major allocations to minority, women and child welfare, as well as Bengaluru development - both infrastructure and traffic control - and the five main poll guarantees of the Congress party, among others.

CM Siddaramaiah alleged the Centre and said, " While introducing Goods and Services Tax, Union Government had assured that there would be growth of 14% and states would be compensated in case of shortage in revenue growth. However, a loss of ₹59,274 crore was incurred by the state due to unscientific implementation of GST in the last 7 years. It was estimated that the GST tax collection would be Rs. 4,92,296 crore from 2017 to 2023-24. Only ₹3,26,764 crore GST revenue was collected and against the GST shortfall of Rs. 1,65,532 crore, the Central Government had released ₹1,06,258 crore as compensation to the state."

Chief Minister Siddaramaiah has allocated ₹52,000 crore for the implementation of five guarantee schemes of Shakti, Gruha Jyoti, Gruha Lakshmi, Yuva Nidhi and Anna Bhagya in 2024-25. The CM said, “Our guarantee schemes are not an election gimmick. These schemes have been designed based on the feedback from people during the Bharath Jodo Yatra taken out by our party.” The CM has announced, that under Gruha Lakshmi scheme, 1.17 crore women have registered till January 2024 and ₹11,726 crore has been directly transferred to the account of beneficiaries. In the year 2024-25, ₹28,608 crore is provided for this scheme. This money will empower women and also provide them with financial support for day-to-day household expenditures. 

The CM said that for the financial year 2024-25, the revenue deficit is estimated to be ₹27,354 crore. The fiscal Deficit is estimated to be ₹82,981 crore, which is 2.95% of GSDP. Total liabilities at the end of 2024-25 are estimated to be ₹6,65,095 crore, which is 23.68% of GSDP. Fiscal discipline has maintained by restricting fiscal deficit and total outstanding liabilities for 2024-25 within the limits mandated under Karnataka Fiscal Responsibility Act, 2022. He said, “I have ensured fiscal discipline by keeping the fiscal deficit within 3% of GSDP and outstanding liabilities within 25% of GSDP. Further, I am confident of achieving Revenue Surplus after next 2 years.” He said, “Though I have presented a revenue deficit budget, I have increased allocation for welfare programmes to ₹1,20,373 crore. The government has decided to allot large chunks of this year's budget to the welfare of women and children, at ₹86,423 crore and ₹54,617 crore, respectively.” On the lines of the Mumbai-Chennai economic corridor, the government has planned similar corridors between the New Mangalore Port and Bengaluru, and Bidar and Bengaluru. For developing a dedicated economic corridor between Bengaluru and Mangaluru has proposed, besides announcing a feasibility study to construct an international cruise and tourism port in Dakshina Kannada district.

The Tourism Policy has revised for 2024-2029 to attract more tourists and investors. A Signature Business Park is being constructed near Kempegowda International Airport in Bengaluru at a cost of ₹817 crore. This park is expected to attract investments of up to ₹5,000 crore in research and innovation and various sunrise sectors in the state.  In the budget, Kisan Malls have introduced for a seamless farming experience, a global floriculture market in Bengaluru for a blooming future, and advanced packhouses to enhance horticultural prowess. Kisan malls will be set up in chosen districts in the state. A horticulture college will be established in Vijayapura district, which is famous for horticulture.  Energy sector got an allocation of ₹23,159 crore in the budget. Solar parks will be set up in Bengaluru’s civic agency offices like BBMP, BMRCL, BDA and BWSSB offices.In the budget it was announced that during the current year, various drought mitigation measures to be undertaken at a total cost of ₹500 crore from the State Disaster Relief Fund.

In May, 2024, Bengaluru Water Supply and Sewerage Board will operationalise Cauvery Phase-5 project of 775 MLD capacity to provide 110 litres of drinking water daily to 12 lakh people, at an estimated cost of ₹5,550 crore. The CM said, “To develop Bengaluru into a world-class city, we have conceptualised Brand Bengaluru. We have introduced major reforms in various sectors to attract investors. During this year, we are focusing on augmentation of resources, reducing traffic congestion, construction of quality roads, supply of clean drinking water, better public transport and creating a clean and beautiful Bengaluru.” He said, “We will work to attract global corporate talent in the emerging areas within the IT and BT sector, Artificial Intelligence and Robotics, Semi-Conductors, Automobiles and other sunrise sectors. In this field, we will lead the country by example.” The CM also announced that an additional 44 km of metro line will be added to the existing 74 km by March 2025. Area Traffic Signal Control System will be installed in collaboration with the Japan Government at 28 major junctions in Bengaluru by using state-of-the-art technology.

A Science City in Bengaluru will be established in association with the Government of India at a total cost of Rs. 233 crore. Knowledge, Health Care, Innovation and Research City (KHIR) will be established in 2000 acres near Bengaluru. Siddaramaiah in his budget speech announced that Karnataka Public Schools will be started with the objective of providing pre-primary to pre-university education, with the help of CSR grants. Rs. 50 crore earmarked for providing Science and Computer Labs and internet facilities under a two-year package in Government High Schools with higher enrollment.CM announced the establishment of a 73-km long Bengaluru Business Corridor (Earlier called Peripheral Ring Road) with an allocation of ₹27,000 crore.The CM’s Budget speech witnessed BJP MLAs protest at Vidhan Soudha over the “Anti farmers” Karnataka budget 2024. BJP MLAs walked out of the state Assembly during the budget presentation.