Karnataka Budget: Siddaramaiah backs guarantees, blames Centre for fiscal woes

Karnataka Chief Minister Siddaramaiah presented his 16th budget on Friday, defending the state’s five guarantee schemes and blaming the Centre for fiscal challenges. He emphasized a “development-oriented” budget, with an estimated total expenditure of ₹4,09,549 crore.

Siddaramaiah, sitting due to knee pain, stressed the government’s role in ensuring resources reach everyone. He called the five guarantees strategic investments, not freebies, and linked them to economic and social benefits. The budget focuses on six key areas: welfare, agriculture, development, urban growth, investment, and governance reforms.

He pledged new strategies to reduce regional disparities, improve education and healthcare, and enhance transport and law enforcement. Karnataka, known for fiscal discipline, became the first state to include off-budget borrowings in total liabilities. However, the Centre’s failure to compensate GST losses and lower tax devolution strained finances, he argued.

Siddaramaiah urged the 16th Finance Commission to increase Karnataka’s tax share while balancing equity and growth. He insisted wealthier states should support poorer ones without harming their own residents or economy.

The budget allocates ₹51,034 crore for guarantees, staying within fiscal norms. Siddaramaiah also announced the Chief Minister’s Infrastructure Development Programme, investing ₹8,000 crore in irrigation, roads, and urban infrastructure.

For 2025-26, Karnataka’s revenue deficit is estimated at ₹19,262 crore (0.63% of GSDP), while the fiscal deficit stands at ₹90,428 crore (2.95% of GSDP). Total liabilities are projected at ₹7,64,655 crore (24.91% of GSDP).

Siddaramaiah assured that Karnataka maintains fiscal discipline, keeping deficits within legal limits.