An Analytical Study Of Karnataka State Budget 2025–26: Fiscal Priorities, Social Commitments, And Economic Implications

Abstract

The Karnataka State Budget 2025–26, Presented By Chief Minister Siddaramaiah, Outlines A Strategic Roadmap Aimed At Balancing Welfare Commitments With Fiscal Discipline. With A Projected Gross State Domestic Product (GSDP) Of ₹30.70 Lakh Crore, The State Estimates A Fiscal Deficit Of ₹90,428 Crore (2.9% Of GSDP) And A Revenue Deficit Of ₹19,262 Crore (0.6% Of GSDP). This Study Aims To Analyze The Fiscal Structure, Sectoral Allocations, Tax Trends, And Welfare Expenditure Using Secondary Data From Government Budget Documents, PRS Legislative Research, And CAG Reports. The Methodology Involves Descriptive And Analytical Techniques Focusing On Budget Indicators, Sectoral Trends, And Policy Impacts. Key Findings Reveal That The Total Budgeted Expenditure Stands At ₹4,09,549 Crore, With ₹3,11,739 Crore Allocated To Revenue Expenditure And ₹68,172 Crore To Capital Outlay. The Five Guarantee Schemes Alone Consume ₹51,034 Crore, Representing 17% Of Revenue Receipts. While Education (₹40,954 Crores), Health (₹18,690 Crores), And Irrigation (22,186 Crores) Have Seen Notable Allocations, Spending Remains Below National Averages In The Education And Health Sectors. Committed Expenditure On Salaries, Pensions, And Interest Payments Accounts For 58% Of Revenue Receipts, Limiting Fiscal Flexibility. The Study Suggests Enhancing Tax Compliance, Monitoring Welfare Program Efficiency, Rationalizing Salaries And Pensions, And Increasing Capital Investments In Underfunded Sectors. In Conclusion, Karnataka's Budget Reflects A Welfare-centric Yet Fiscally Cautious Approach. However, Sustaining This Model Demands Improved Revenue Mobilization And Better Governance Of Public Spending. References Include PRS Legislative Research (2025), Government Of Karnataka Budget Documents (2025), And The CAG State Finance Report (2023).

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