Karnataka Chief Minister Siddaramaiah presented his record 16th budget, marking a historic moment as the state’s budget outlay surpassed the ₹4 lakh crore mark for the first time. With an increase from last year’s ₹3.7 lakh crore, the latest budget prioritises welfare schemes, infrastructure development, and industrial growth, while also addressing the needs of minority communities.
Karnataka’s fiscal deficit pegged at nearly 3% of state GDP
However, as in previous years, the budget remains in revenue deficit, with the fiscal deficit pegged at 2.95% of the state’s GDP. The total revenue expenditure stands at ₹3.1 lakh crore, while capital expenditure has been set at over ₹71,000 crore.
In terms of key allocations, approximately ₹94,000 crore is earmarked for women-centric programmes, around ₹62,000 crore for children-centric programmes, ₹50,000 crore for roads and transport, and ₹32,000 crore for the education sector.
Bengaluru’s annual grant doubled to ₹7,000 crore
India’s tech capital, Bengaluru, is set to receive a major facelift, with its annual grant more than doubling to ₹7,000 crore. Additionally, under the “Brand Bengaluru” initiative, ₹1,800 crore has been allocated for new flyovers, road expansions, and metro project enhancements.
A key highlight of the budget is increased support for minority communities. The government has announced a 4% reservation for Muslims in government tenders and contracts. The budget also includes financial allocations of ₹100 crore for Jain, Buddhist, and Sikh community development, and ₹250 crore for Christian community development.
State govt caps cinema ticket prices at ₹200
Moreover, cinema enthusiasts have reason to celebrate, as the government has capped ticket prices in multiplexes and theatres at ₹200. Additionally, a state-sponsored OTT platform has been proposed to promote Kannada films.
Key Highlights of Karnataka Budget 2025-26
Overall Budget
Total budget outlay: ₹4.09 lakh crore vs ₹3.71 lakh crore last year (crossing ₹4 lakh crore for the first time)
Revenue expenditure: ₹3.11 lakh crore
Capital expenditure: ₹71,336 crore
Revenue deficit: ₹19,262 crore (down from ₹27,354 crore in FY25)
Fiscal deficit: ₹90,428 crore, 2.95% of GSDP
Key Allocations
₹94,084 crore allocated for women-centric programmes
₹62,033 crore allocated for children-centric programmes
₹50,000 crore allocated for roads, urban transport, and rural connectivity projects
₹32,000 crore for the education sector
Bengaluru Infrastructure Development
Annual grant for Bengaluru increased from ₹3,000 crore to ₹7,000 crore
₹1,800 crore allocated for 21 schemes under the ‘Brand Bengaluru’ Plan
40.5 km double-decker flyover alongside Namma Metro Phase-3 (₹8,916 crore)
300 km additional road network using canal buffer zones (₹3,000 crore)
460 km arterial & sub-arterial road network in BBMP area (₹660 crore)
120 km of flyovers & grade separators in Bengaluru
Bengaluru Metro will be expanded to Devanahalli, near Kempegowda International Airport
Support for Minority Communities
4% reservation for Muslims introduced in government tenders and contracts
₹150 crore for Waqf property repair & Muslim burial ground infrastructure
₹100 crore for Jain, Buddhist, and Sikh community development & ₹250 crore for Christian community development
Film & Entertainment
Ticket price cap: Maximum ₹200 per show in all theatres, including multiplexes
State-sponsored OTT platform to promote Kannada cinema
