Siddaramaiah to present his 16th budget in assembly today

Chief minister Siddaramaiah will on Friday present his 16th Karnataka Budget — the most by any leader in the state’s history.

With the outlay expected to exceed ₹4 lakh crore, the budget will likely to focus on infrastructure development while ensuring continued funding for its welfare schemes.

The state government, which allocated ₹52,000 crore to its five guarantee schemes last year, will unlikely scale down social spending despite financial constraints.

The budget will also likely address the challenge of balancing developmental projects with rising borrowings, which are expected to surpass ₹1.25 lakh crore.

To finance infrastructure improvements, the government will likely borrow ₹3,500 crore from the World Bank for flood management, stormwater drainage, and drinking water projects.

Siddaramaiah previously stated that Karnataka’s fiscal deficit stood at 2.9% of its Gross State Domestic Product (GSDP), with borrowings at 23% of GSDP—figures he claimed were lower than those of neighbouring states such as Kerala, Tamil Nadu, and Maharashtra.

However, the state remains bound by the Karnataka Fiscal Responsibility Act, which caps borrowings at 25% of GSDP.

Recent revenue collection data has provided some relief to the government. Revenue minister Krishna Byre Gowda informed the Legislative Council that revenue from stamps and registration had increased by 17% compared to the previous year. Growth in commercial taxes and excise collections has also been reported, improving the state’s financial position.

Siddaramaiah is expected to emphasise Karnataka’s economic growth, the success of Invest Karnataka 2025, and the state’s development model in his budget speech. The government may also announce an increase in capital expenditure to counter opposition claims of neglecting infrastructure projects.

With elections for rural and urban local bodies approaching, the budget is likely to include additional funding for Scheduled Castes and Scheduled Tribes under the Special Component Plan (SCP) and Tribal Sub-Plan (TSP), as well as allocations for the Kalyana Karnataka region, midday meal workers, and smaller minority caste groups.