Karnataka's Budget Exceeds Rs 4 Lakh Crore; Siddaramaiah Unveils Rs 19,262 Crore Deficit
Click to start listening
Synopsis
On March 7, Karnataka Chief Minister Siddaramaiah presented a record budget of Rs 4.08 lakh crore, highlighting a Rs 19,262 crore revenue deficit for 2025-26. The budget reflects significant increases in revenue receipts and outlines ambitious targets for various departments.
Key Takeaways
- Total budget outlay: Rs 4.08 lakh crore
- Estimated revenue deficit: Rs 19,262 crore
- Projected total expenditure: Rs 4,09,549 crore
- Karnataka's GST revenue ranking: 2nd highest in India
- Proposed increase in professional tax from Rs 200 to Rs 300
Bengaluru, March 7 (NationPress) The Chief Minister of Karnataka, Siddaramaiah, who also oversees the finance portfolio, unveiled his 16th budget on Friday, marking a historic milestone with a total outlay of Rs 4.08 lakh crore, an increase from Rs 3.71 lakh crore in the Financial Year 2024-25.
According to CM Siddaramaiah, the projected total Revenue Receipts for 2025-26 amount to Rs 2,92,477 crores. This includes an estimated own tax revenue of Rs 2,08,100 crore, non-tax revenue of Rs 16,500 crore, and Govt. of India receipts of Rs 67,877 crore. Additionally, gross borrowings are expected to reach Rs 1,16,000 crore, with non-debt capital receipts estimated at Rs 170 crore for 2025-26.
CM Siddaramaiah stated that the total receipts projected in the budget for 2025-26 are Rs 4,08,647 crore.
The estimated total expenditure for 2025-26 is Rs 4,09,549 crore, which includes revenue expenditure of Rs 3,11,739 crore, capital expenditure of Rs 71,336 crore, and loan repayments of Rs 26,474 crore.
For the financial year 2025-26, a revenue deficit is anticipated at Rs 19,262 crore, equating to 0.63 per cent of GSDP. The fiscal deficit is projected to be Rs 90,428 crore, or 2.95 per cent of GSDP.
CM Siddaramaiah noted that the total liabilities by the end of 2025-26 would be approximately Rs 7,64,655 crore, which represents 24.91 per cent of GSDP. He emphasized that the government has adhered to the fiscal discipline mandated by the Karnataka Fiscal Responsibility Act for the financial year 2025-26.
In the revised estimates for 2024-25, a total receipt of Rs 3,58,657 crore is expected, with revenue receipts projected at Rs 2,57,801 crore. This includes state own tax revenue of Rs 1,80,368 crore, non-tax revenue of Rs 14,500 crore, and receipts from the government of India totaling Rs 62,933 crore.
The total expenditure for the revised estimates of 2024-25 is projected at Rs 3,65,865 crore, encompassing revenue expenditure of Rs 2,83,928 crore and capital expenditure of Rs 81,937 crore, including loan repayments.
Karnataka ranks as the second highest GST revenue collecting state in India for 2024-25, with a total revenue of Rs 1,05,000 crore anticipated from commercial tax in the revised estimates.
The revenue target for the Commercial Tax Department for the financial year 2025-26 is set at Rs 1,20,000 crore. Additionally, the revised estimates for 2024-25 foresee a revenue of Rs 36,500 crore from state excise, with a collection target of Rs 40,000 crore for 2025-26.
For the Stamps and Registration Department, the revenue target for 2025-26 is Rs 28,000 crore. The projected revenue from motor vehicle tax in the revised estimates for 2024-25 is Rs 12,500 crore, with a collection target of Rs 15,000 crore for the Transport Department in 2025-26.
CM Siddaramaiah indicated that the revenue collection by the Mines and Geology Department is projected to reach Rs 7,250 crore according to the revised estimates for 2024-25.
Currently, royalty is being levied based on the provisions of the Mines and Minerals Development and Regulation (MMDR) Act. Following a ruling by the Hon’ble Supreme Court, the state government has enacted legislation to impose a tax on major minerals alongside the royalty. CM Siddaramaiah stated that an additional revenue of Rs 3,000 crore from taxes on mines is anticipated for 2025-26, with royalty collection estimated at Rs 9,000 crore.
Furthermore, CM Siddaramaiah proposed amendments to the Professional Tax Act, suggesting an increase in the Professional Tax from Rs 200 to Rs 300 for the month of February, to align with the maximum permissible limit of Rs 2500 annually.
