Karnataka Chief Minister Siddaramaiah, who also holds a finance portfolio, presented the budget with a total outlay of ₹4 lakh crores for FY 2025-26, higher than the previous year’s ₹3.71 lakh crores budget. The total revenue expenditure amounts to ₹3.11 lakh crores, whereas capital expenditure amounts to ₹ 71,336 crores. Karnataka’s GDP recorded an increase of 7.4 percent, surpassing the national growth rate of 6.2 per cent.  The key focus of the budget is on fiscal discipline while outlining various government initiatives aimed at enhancing infrastructure, supporting marginalized groups and boosting economic growth. The CM also highlights the issues of traffic congestion.

 

In the budget speech, Siddaramaiah announced a special package of ₹10 crores to provide basic facilities in Maoist-affected areas after disbanding the Anti-Naxal Force.

 

With the robust need for infrastructure development, an allocation of ₹5,000 crore has announced for rural connectivity projects, along with ₹3,000 crore for developing national and state highways and ₹2,000 crore is for upgrading rural roads. Moreover, for the metro expansion in the city, a sum of ₹6,500 crore was set aside. Bengaluru’s metro network will be extended to Kempegowda International Airport to enhance urban mobility, and Vijayapura Airport will become operational by 2026.  

 

The CM announced a substantial increase in annual grants of ₹7,000 crores for the development of Bengaluru city alongside establishing a new Special Purpose Vehicle (SPV). A total of ₹1,800 crore has been earmarked for 21 projects under the Brand Bengaluru Project. Under this initiative, a sum of ₹413 crore was set aside for the ‘Comprehensive Health Programme’ over the next three years to make Bengaluru a city of global health standards.

Another budgetary announcement includes measures to make Bengaluru city a signal-free corridor by allocating ₹8,916 crore for constructing a 40.5 km double-decker flyover along with the Namma Metro Phase – 3 Project. In addition, a network of 300 km of additional roads will be established at a cost of ₹3,000 crore by utilizing canal buffer zones along with flyovers and Grade Separators of length 120 km in Bengaluru city. To address the weather-related challenges and enhance the city’s drainage and sewage treatment infrastructure, an allocation of ₹3,000 crore was announced along with ₹555 crore for Phase 5 of the Cauvery water supply project.

 

The Karnataka Budget allocated ₹51,034 crore for this fiscal year's five guarantee schemes. For the upliftment of the minority communities, grants worth ₹100 crores were earmarked for the Comprehensive development of Jain, Buddhist and Sikh communities, along with ₹250 crores for the development of the Christian community. The government also introduced a 4 per cent reservation for Muslims in government tenders and contracts and established a Sannati Development Authority in the Kalaburgi district of Sannati.

 

The education sector will receive increased funding, rising from ₹29,000 crore last year to ₹32,000 crore in the budget. This includes ₹5,000 crore for upgrading government schools, Rs 3,500 crore for higher education and ₹2,000 crore for skill development programs.

 

The Karnataka government decided to cap their movie ticket prices in multiplexes at ₹200, and to promote Kannada movies, an OTT platform will be created in the state. The government announced the sum of ₹500 crores in the PPP model for the development of an international-level Film City in Mysuru. Also, 150-acre land has been transferred to the Department of Information and Public Relations.

 

The Karnataka government introduced a new industrial policy 2025-30, aiming to attract ₹7.5 lakh crore investment and generate 20 lakh jobs, focusing on creating a business-friendly environment by promoting industries and boosting employment. CM Siddaramaiah said, “Our government is implementing the Yuvanidhi Scheme to provide unemployment allowance to unemployed graduates and diploma holders. About 2.58 lakh youths have registered under this scheme, and an unemployment allowance of Rs.286 crore has been transferred through Direct Benefit Transfer (DBT).”

Siddaramaiah described the budget as more than a financial statement, calling it a roadmap for the seven crores people of Karnataka. He assured that the budget aims to benefit all sections of society through government schemes.