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Karnataka Chief Minister Siddaramaiah presented the state's largest budget, allocating INR 4,48,004 crore (around USD 54.7 billion) to promote balanced development, combining social welfare with infrastructure and economic transformation. Key initiatives include an IT Park in Mangaluru, making Mysuru the second IT city, and establishing a Bengaluru Robotics and AI Innovation Zone. The budget also focuses on education, healthcare, water projects, regional development, and employment generation. Revenue and fiscal deficits are projected within legal limits. The plan reflects a long-term framework, known as the "11G model," guiding Karnataka's growth and addressing regional and social disparities.
Karnataka's latest budget, presented by Chief Minister Siddaramaiah, totals INR 4,48,004 crore (USD 54.7 billion) and aims to balance welfare initiatives with infrastructure investment and long-term economic transformation. The government emphasized a state-specific framework, the "11G model," to guide sustainable growth and regional equity. Advertisement
The budget proposes filling 56,432 vacant posts across departments, establishing 800 new public schools, 40 degree colleges, 11 polytechnics, and 40 residential schools. Initiatives like the Vasudhamruta programme promote environmentally friendly farming, while the Rohith Vemula Act seeks to prevent caste-based discrimination in education. Student union elections will also be held across colleges and universities to strengthen youth participation.
Significant infrastructure investments include INR 7,000 crore for Bengaluru development, INR 5,000 crore for Kalyana Karnataka, an IT Park in Mangaluru, and developing Mysuru as the state's second IT hub. The budget also proposes a Bengaluru Robotics and AI Innovation Zone to encourage technology-driven growth. Healthcare initiatives include free insulin pens for children up to 18 years with Type-1 diabetes. Water projects, including the Mekedatu balancing reservoir, are planned despite objections from Tamil Nadu.
Fiscal projections estimate a revenue deficit of INR 22,957 crore (USD 2.8 billion) and a fiscal deficit of INR 97,449 crore (USD 11.9 billion), or 2.95% of GSDP, with total liabilities of INR 8,24,389 crore (USD 100 billion). Gross borrowings are set at INR 1.32 lakh crore (USD 16.1 billion). The government stressed that both fiscal deficit and liabilities remain within limits prescribed under the Karnataka Fiscal Responsibility Act.
Political responses were mixed. The opposition BJP criticized the budget as lacking new initiatives and overly reliant on borrowing. The Chief Minister, in turn, accused the Centre of neglecting Karnataka's needs and undermining cooperative federalism. He highlighted that GST rate restructuring had reduced state collections by INR 10,000 crore (USD 1.2 billion) this fiscal year and projected a further INR 15,000 crore (USD 1.8 billion) reduction next year.
The "11G model" emphasizes a guarantee economy promoting welfare and gender equality, universal access to quality education, comprehensive healthcare, rural and agricultural development, gig economy labor welfare, regional equality, global trade promotion, tourism-driven growth, green energy initiatives, and sustainable urban development. These principles form the foundation of Karnataka's development strategy, combining immediate social welfare with long-term economic and infrastructure planning.
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