Karnataka Budget 2025 Highlights: Major boost for Brand Bengaluru, liquor prices may rise

Karnataka CM Siddaramaiah announced Bengaluru City University’s renaming after Dr Manmohan Singh while presenting the 2025 state Budget. The budget prioritizes infrastructure, healthcare, and urban development, with major allocations for roads, flyovers, metro expansion, and a ₹413 crore health program, strengthening Brand Bengaluru initiatives.

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• Grey water management units to be established in 500 villages to improve wastewater management.
• Spice and fruit crops to be cultivated across 5,000 acres under a mixed crop system, in collaboration with rural self-help groups.
• 5,000 km of state and district roads in rural areas to be lined with saplings to promote greenery.
• ‘Krishi Patha’ scheme to be launched for the development of farm access roads in a phased manner.
• Krishi Kavacha Scheme to enhance groundwater recharge and soil conservation by constructing bunds across 50,000 hectares of farmland.

The Karnataka Budget 2025-26 allocates ₹4,09,549 crore, focusing on Bengaluru’s infrastructure, traffic, and public safety. Key projects include tunnel roads, metro expansion, flyovers, and drainage upgrades. ₹1,800 crore is set for ‘Brand Bengaluru,’ alongside security enhancements, minority welfare, and revenue-boosting reforms.

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Unemployed individuals from Backward Class Communities will receive financial assistance of up to Rs 3 lakh per person.

The support aims to empower beneficiaries by helping them purchase electric four-wheelers or set up food kiosks, fostering self-employment and entrepreneurship.

The beneficiary contribution under Pradhan Mantri Awas Yojana (Urban) has been reduced to Rs 1 lakh, with the state government covering Rs 5 lakh on their behalf.

The Karnataka Slum Development Board has sanctioned the construction of 1,80,253 houses, with 86,651 already completed. The remaining houses will be fast-tracked to ensure timely completion.

The government has earmarked Rs 100 crore for the development of Jain, Buddhist, and Sikh communities, along with Rs 250 crore for the Christian community.

The monthly honorarium for Jain priests, Chief Granthis of Sikhs, and Pesh-Imams of mosques will be increased to Rs 6,000, while Assistant Granthis and Muezzins will receive Rs 5,000 per month.

Additionally, multi-purpose halls will be constructed to support cultural and social events for minority communities. These halls will be built at a cost of Rs 50 lakh at hobli and taluk levels and Rs 1 crore at district headquarters and city corporation areas.

The Karnataka government has projected total expenditure of Rs 4.09 lakh crore for 2025-26. This includes revenue expenditure of Rs 3,11,739 crore, capital expenditure of Rs 71,336 crore, and loan repayment of Rs 26,474 crore.

Opposition protests against state government during Karnataka Assembly Budget Session.

The Karnataka government has projected total receipts of Rs 4.08 lakh crore for the 2025-26 financial year. This includes total revenue receipts of Rs 2,92,477 crore, comprising own tax revenue of Rs 2,08,100 crore, non-tax revenue of Rs 16,500 crore, and Rs 67,877 crore from the Government of India. Additionally, the state anticipates gross borrowings of Rs 1,16,000 crore and non-debt capital receipts of Rs 170 crore, bringing the total estimated receipts to Rs 4,08,647 crore.

Karnataka Budget 2025-26 prioritizes fiscal discipline, Bengaluru infrastructure, minority welfare, and economic growth with an expenditure of Rs 4.09 lakh crore.

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• Tribal Empowerment: 13 tribal communities to get direct employment opportunities in state civil services.
• Healthcare Expansion: New Trauma Care Centres to be set up in Badami and Chitradurga.
• Agricultural Growth: Mandya to get a new Agricultural University to boost research and education.
• Economic Overview: Total borrowings for the year set at Rs 1.16 lakh crore.
• Industrial Development: Japanese Industrial Park to be developed in Tumkur.
• Sustainable Farming: Rs 20 crore allocated to promote Organic and Millet cultivation.
• Weaver Support: Rs 100 crore assistance for weavers, with subsidy eligibility extended to powerloom setups up to 20 HP.
• Entrepreneurship for SC Youth: Fast food trucks to be provided under a self-employment scheme.
• Textile Growth: New textile parks to be established in Karkala, Ranibennur, Raichur, Kadur, and Chikmagalur.
• Tribal Welfare: 47,859 tribal families to receive nutritious food kits under a Rs 120 crore scheme.

• Global Education Aid: Eligible students admitted to prestigious institutions like the London School of Economics (LSE) and Columbia University will receive Rs 1 crore in financial assistance.
• Upgrading Residential Schools: 31 residential schools for SC/ST and backward class students will be upgraded to PU colleges to improve educational access.
• Infrastructure Development: 61 KREIS residential schools to receive new buildings at a cost of Rs 1,292 crore.
• Scholarship Support: Rs 120 crore allocated to ensure the continuation of student scholarships, benefiting marginalized communities.

Karnataka CM Siddaramaiah presented the 2025-26 budget, allocating Rs. 51,034 crores for guarantee schemes while ensuring fiscal discipline and economic growth.

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• Agriculture Boost: Rs 7,145 crore allocated to the Agriculture Department; 49,790 acres brought under micro-irrigation, with plans to develop 30 more lakes to expand irrigation by 1,77,000 acres.
• Education Initiatives: 500 new Karnataka Public Schools to be set up with Rs 2,500 crore funding from the Asian Development Bank. Special training programs for minority students to prepare for competitive exams.
• Infrastructure & Development: Modern centralised bus station to be built at Bannimantap, Mysuru. New Rajiv Gandhi Health University to be established in Belagavi. Rs 234 crore earmarked for lake preservation in Bengaluru.
• Welfare Measures: Monthly honorarium increased by Rs 1,000 for government school cooks and Rs 2,000 for guest teachers and lecturers.
• Cultural Support: Badami Chalukya Utsav celebrations to receive Rs 2 crore in government funding.

The Karnataka Housing Board (KHB) will develop 16,140 sites in Suryanagar, Anekal Taluk, Bengaluru, with 50% of developed land allocated to landowners and the rest available for public sale or allotment. To strengthen food security, new fair price shops will be opened for distributing subsidized rice under the ‘Anna Bhagya’ scheme. Additionally, the state will launch the ‘Akka (Sister) Cooperative Society’ to support women entrepreneurs. Beneficiaries of the Gruha Lakshmi scheme—receiving Rs 2,000 per month—will be integrated into Stree Shakti Sanghs to promote women’s empowerment.

A new nursing college will be established in Yadgir, along with nursing colleges in Kalburgi and Jevargi, to strengthen healthcare education in the region. The government has allocated Rs 26,735 crore for rural development, focusing on infrastructure and livelihood improvements. In animal husbandry, 50 new veterinary clinics will be set up in 2025-26, with plans to establish 100 veterinary institutions in partnership with NABARD, enhancing veterinary care across rural Karnataka.

A silkworm market will be established in Mysore in collaboration with NABARD, providing better market access for silk farmers in the region. To boost urban development, Rs 2,000 crore has been allocated to Mahanagara Palikes. Additionally, Rs 55 crore has been earmarked under the Pre- and Post-Silkworm Activity Development Scheme to expand silk farming across the state.

In a major push for safety and security, the government will establish 60 additional women-only police stations across Bengaluru.

To further enhance surveillance, 7,500 CCTV cameras will be installed at key locations in the city.

A total of Rs 667 crore has been allocated to upgrade safety infrastructure and strengthen law enforcement.

CM Siddaramaiah introduced the Industrial Policy 2025-30, aiming for 12% industrial growth and the creation of 20 lakh jobs by 2030. This year, the sector has already recorded 5.8% growth. To attract large-scale investments, the government has allocated Rs 13,692 crore in financial assistance and subsidies.

• Liquor Price Revision: Prices likely to be reviewed and increased to align with rates in neighboring states.
• Excise Revenue Target: Rs 36,500 crore collected last year; new target set at Rs 40,000 crore.
• Support for Areca Nut Farmers: Rs 62 crore allocated to aid over 2 lakh Malnad growers affected by leaf spot disease.
• Construction Worker Welfare: Ex-gratia for on-the-job fatalities doubled from Rs 75,000 to Rs 1.5 lakh; New residential schools to be built for their children.
• Education for Social Change: CM Siddaramaiah quotes Savitribai Phule, highlighting education as a tool to break caste barriers.