Bengaluru, Mar 7 (UNI) Presenting the Karnataka Budget 2025, Chief Minister Siddaramaiah on Friday outlined a significant increase in capital expenditure, key industrial incentives, and measures for social welfare, underscoring the government's commitment to economic growth and inclusive development.
Highlighting the pivotal role of infrastructure in economic progress, the Chief Minister announced a 47.3% rise in capital expenditure for the fiscal year. Under the Chief Minister’s Infrastructure Development Programme, Rs 8,000 crore has been allocated to boost projects across the state, focusing on roads, urban development, and public utilities.
The state’s non-tax revenue for 2024-25 is projected to reach Rs 14,500 crore, reflecting a 10.5% increase over the previous year. However, concerns persist over its stagnant contribution to the Gross State Domestic Product (GSDP). Siddaramaiah reiterated Karnataka’s demand for a fair share of central taxes, citing the need for equitable financial distribution.
The state government has introduced sectoral policies to attract Rs 1 lakh crore in investments across industries, IT, tourism, and biotechnology. To facilitate business expansion, Rs 13,500 crore has been earmarked for subsidies and financial support. In a bid to promote cultural and economic growth, the government will officially recognise the film industry to attract investments and launch Karnataka’s own OTT platform for Kannada content.
With the agriculture sector recording a 3.8% growth due to favourable monsoons and proactive government policies, the budget allocates Rs 5,300 crore to the Upper Bhadra Irrigation Project. Additionally, Rs 95 crore has been designated for advanced horticulture initiatives. Farmers will gain access to a new Knowledge Bank at IISc, focusing on production techniques, crop health, and market trends.
To boost job-oriented and inclusive growth in the industrial and manufacturing sectors, the government has introduced the Industrial Policy 2025-30, targeting 12% industrial growth and 20 lakh new jobs by 2030. With the sector already recording 5.8% growth this year, Rs 13,692 crore has been committed towards financial assistance and subsidies to attract large-scale investments.
In a major push for education, the government has announced the upgrade of 50 high schools and the establishment of 500 new government schools. Agricultural education will receive a boost with the opening of a new agricultural college in Athani. On the healthcare front, a multispeciality hospital is set to come up in Koppal, while a nephrology hospital under the Kidwai Institute will be established in Raichur. Additionally, Rs 300 crore has been allocated to initiatives aimed at reducing child and maternal mortality.
The budget reflects the state’s commitment to fostering sustainable economic growth, enhancing social infrastructure, and ensuring welfare-driven policies to benefit all sections of society.
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