While funds to sectors have increased in-line with the budget size, percentage of allocation has mostly remained unchanged from 2023-2024.
With this Budget, Siddaramaiah has presented a record 15 Budgets for the state in the span of his political career. (Supplied)
Karnataka’s fiscal landscape for the year 2024-25 unfolds with a substantial outlay of ₹3,71,383 crore, as unveiled by Chief Minister Siddaramaiah at the Vidhana Soudha in Bengaluru on Friday, 16 February.
Chief Minister Siddaramaiah, who also holds the Finance portfolio, presented the Congress-led state government’s first full-fledged Budget for the fiscal year 2024-25. With this Budget, he has presented a record 15 Budgets for the state in the span of his political career.
Along with increasing the Budget, the total revenue receipts have also surged to ₹2,63,178 crore, showcasing an increase of 10.44 percent from the previous fiscal year. Similarly, the state own tax and non-tax revenues also witnessed an uptick.
#KarnatakaBudget2024: Total expenditure is estimated to be Rs 3,71,383 crore.
Total Receipts: 3,68,674 crore
Revenue receipts: Rs 2,63,178 crore
Capital receipts: Rs 38 crore including debt of Rs 1,05,246 crore pic.twitter.com/nMEr4oVceB— South First (@TheSouthfirst) February 16, 2024
The State Own Tax Revenue is estimated to rise 8.12 percent, reaching ₹1,89,893 crore, while Non-Tax Revenue is estimated to increase by 8 percent, amounting to ₹13,500 crore in 2024-2025. The state is expected to receive ₹44,485 crore and ₹15,300 crore under tax devolution and grant-in-aid, respectively from the centre.
Notably, gross borrowings are expected to surge to ₹1,05,246 crore, marking a significant increase from the preceding fiscal year, where it was projected at ₹85,818 crore in 2023-24. Non-debt capital receipts of ₹38 crore and recovery of loans of ₹213 crore is also estimated.
On the expenditure front, for 2024-25, total expenditure is estimated at ₹3,71,383 crore, indicating a rise of 13.34 percent from the previous fiscal year. This includes revenue expenditure of ₹2,90,531 crore, capital expenditure of ₹55,877 crore, and loan repayment of ₹24,974 crore.
The revenue deficit for 2024-25 is estimated ₹27,354 crore a considerable increase from 2023-2024. The fiscal deficit for 2024-25 is estimated at ₹82,981 crore, representing 2.95 percent of the GSDP, while total liabilities are projected to be ₹6,65,095 crore, equivalent to 23.68 percent of GSDP.
Despite heightened expenditures, the state is expected to maintain fiscal deficit within mandated limits under the Karnataka Fiscal Responsibility Act, 2022. The budget, however, is a revenue deficit budget for the second consecutive year.
The fiscal year 2024-25 has brought forth notable shifts in Budget allocations across various sectors and departments, painting a picture of both growth and restraint in government spending.
The allocation for Women and Child Welfare has also seen a significant surge. This sector, crucial for social development, has received Rs 34,406 crore, accounting for 9 percent of the total budget. This marks a noteworthy increase from the previous fiscal year, where it garnered Rs 24,166 crore, representing 7 percent of the total budget.
Energy has been allocated Rs 23,159 crore, accounting for 6 percent of the budget. In terms of funds, there is a marginal increase from the previous year’s allocation of Rs 22,773 crore but the percentage point is one less than last year’s allocation.
Rural Development and Panchayat Raj (RDPR) has also witnessed a rise in allocation, receiving Rs 21,160 crore, which accounts for 5 percent of the total budget. This marks a significant increase compared to the preceding fiscal year, where it received Rs 18,038 crore making up 5 percent of the total budget.
The Home and Transport sector has been allocated Rs 19,777 crore, accounting for 5 percent of the total budget. This reflects a notable increment from the previous fiscal year’s allocation of Rs 16,638 crore, constituting 5 percent of the total budget.
Irrigation, crucial for agricultural development and water resource management, has received Rs 19,179 crore, making up 5 percent of the total budget. While this remains relatively consistent with the previous fiscal year’s allocation of Rs 19,044 crore (6 percent of the total budget), it signifies sustained attention to this critical sector.
The Revenue sector has been allocated Rs 16,170 crore, accounting for 4 percent of the total budget, barely noticeable increase from the previous fiscal year’s allocation of Rs 16,167 crore, which accounted for 5 percent of the total budget.
Health and Family Welfare, crucial for public health and well-being, has received Rs 15,145 crore, making up 4 percent of the total budget. This shows a slight increase from the previous fiscal year’s allocation of Rs 14,950 crore, which amounted to 4 percent of the total budget.
Social Welfare, aimed at addressing the needs of vulnerable sections of society, has been allocated Rs 13,334 crore, representing 3 percent of the total budget. This reflects an increase from the previous fiscal year’s allocation of Rs 11,174 crore, which also accounted for 3 percent of the 2023-2024 budget.
Public Works has received Rs 10,424 crore, accounting for 3 percent of the total budget. This marks a slight increase in terms of absolute funds from the previous fiscal year’s allocation of Rs 10,143 crore, also comprising 3 percent of the total budget.
Urban Development and Housing, essential for sustainable urban growth, has been allocated Rs 18,155 crore, comprising 5 percent of the total budget. This marks a decrease from the previous fiscal year’s allocation of Rs 21,660 crore, which represented 6 percent of the total budget.
Food and Civil Supplies, essential for ensuring food security and distribution, have been allocated Rs 9,963 crore, making up 3 percent of the total budget. This represents a decrease from the previous fiscal year’s allocation of Rs 10,460 crore, which comprised 3 percent of the total budget.
Agriculture and Horticulture, crucial for sustaining the agrarian economy, has received Rs 6,688 crore, accounting for 2 percent of the total budget. This marks a minor increase from the previous fiscal year’s allocation of Rs 5,860 crore, which represented 2 percent of the total budget.
Animal Husbandry and Fisheries, integral for livestock development and fisheries management, has been allocated Rs 3,307 crore, making up 1 percent of the total budget. This indicates a slight increase from the previous fiscal year’s allocation of Rs 3,024 crore, constituting 1 percent of the total budget.
The government has allocated Rs 1,24,593 crore, which accounts to 33 percent of the total budget to all other sectors combined. In the previous fiscal year, the government allotted Rs 1,09,639 crore, which accounted 32 percent of the budget 2023-24 for other sectors.
“In the fiscal structure of Karnataka, every rupee expended is an investment towards fostering economic growth, social welfare, and infrastructure development,” the budget speech said.
When scrutinising the Karnataka government’s expenditure, every rupee spent is broken down into paise for reference. Here is how the budget speech explains expenditure for every rupee:
May 07, 2024
May 07, 2024
May 07, 2024
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May 08, 2024
May 07, 2024
