The Karnataka Budget 2025 was presented with Chief Minister Siddaramaiah making a strong case for the state’s welfare programs. He firmly stated that these are strategic investments rather than mere giveaways. His 16th budget highlighted social and economic principles, addressing key challenges and ensuring financial assistance reaches those in need.
Key Highlights of Karnataka Budget 2025
Siddaramaiah emphasized that his government’s schemes offer concrete solutions to various economic and social challenges. He increased allocations for multiple welfare programs and referenced the late Muzaffar Assadi, a noted scholar, stating, “Behind the guarantee schemes lie the suffering of the poor, the violence of poverty, the struggles of women, and the vision of an unequal India.”
Six Key Development Dimensions
This year’s Karnataka Budget 2025 focuses on six crucial developmental areas:
- Welfare Programmes Budget
- Agriculture and Rural Development Budget
- Development-Oriented Budget
- Prioritizing Urban Development
- Investment and Job Creation
- Governance Reforms
Major Welfare Schemes and Allocations
Anna Bhagya Scheme – Free Rice Distribution
One of the most notable welfare initiatives, the Anna Bhagya scheme, has been revamped. The government will now provide actual rice instead of financial assistance, benefitting 4.21 crore people across Karnataka.
Yuva Nidhi Scheme – Unemployment Allowance
The Yuva Nidhi scheme aims to support unemployed graduates and diploma holders. So far, 2.58 lakh youth have registered, with Rs 286 crore transferred via Direct Benefit Transfer (DBT).
Gruha Lakshmi Scheme – Financial Support for Women
The Gruha Lakshmi scheme, which provides Rs 2,000 per month to women heads of families, has faced criticism due to its high budget allocation. However, Siddaramaiah reassured that 1.22 crore women have received benefits, amounting to Rs 28,608 crore in expenditure.
Shakti Scheme – Free Bus Travel for Women
The Shakti scheme, which offers free bus travel for women, has already benefitted 226.53 crore women passengers. The state spent Rs 5,015 crore in 2024-25 and has earmarked Rs 5,300 crore for 2025-26.
Gruha Jyoti Scheme – Free Electricity
Providing up to 200 units of free electricity, the Gruha Jyoti scheme has attracted 1.62 crore beneficiaries. The government has allocated Rs 10,100 crore for the initiative in 2025-26.
Women Empowerment and Green Economy
Siddaramaiah emphasized women’s empowerment and a green economy as key focus areas. Karnataka leads in renewable energy, promoting eco-friendly industries, water recycling, and sustainable development.
Karnataka Budget 2025: Expenditure and Financial Breakdown
The total estimated expenditure for 2025-26 stands at Rs 4,09,549 crore, divided as follows:
- Revenue Expenditure: Rs 3,11,739 crore
- Capital Expenditure: Rs 71,336 crore
- Loan Repayment: Rs 26,474 crore
Concerns Over Revenue Generation
Political analysts, including Sandeep Shastri, expressed concerns about the reduced emphasis on education, health, and infrastructure. He noted:
- Only 10% of the budget is allocated for education
- 5% for healthcare
- 27% of revenue comes from borrowing, which may lead to inflationary trends
- 18% of the budget is spent on debt servicing
Simply put, for every Re 1 spent, 18 paise goes toward paying off past debts, and 27 paise is borrowed, raising concerns about long-term financial stability.
Conclusion
The Karnataka Budget 2025 reinforces the Congress government’s commitment to welfare programs, aiming to uplift marginalized sections of society. While the initiatives promise long-term economic benefits, experts warn of potential debt accumulation and inflation risks. As Karnataka progresses, balancing welfare spending and revenue generation remains a crucial challenge for the government.
