On March 7, 2025, Chief Minister Siddaramaiah will present the 16th Budget of his tenure. The Karnataka state government is expected to allocate 4 lakh crore for the upcoming fiscal year, marking an increase from ₹3.71 lakh crore in the previous year. The state’s legislative session began on March 3, 2025, with a speech by Governor Thaawarchand Gehlot.
State’s Economic Performance
The state’s GDP has shown a robust growth of 7.4%, surpassing the national growth rate of 6.2%. Agriculture has also posted a positive % growth rate of 4%, further strengthening the state’s economic standing.
Major Announcements in the Budget
- Metro Expansion: One of the most anticipated announcements is the extension of Bengaluru’s metro network, which will now connect to Kempegowda International Airport, enhancing the city’s transportation infrastructure.
- North-South Tunnel: To alleviate Bengaluru’s notorious traffic congestion, a ₹15,000 crore project has been proposed to construct an 18.5 km long North-South tunnel linking Hebbal Esteem Mall to Silk Board Junction.
- Infrastructure and Urban Development: A significant ₹1,800 crore has been earmarked for 21 key projects under the “Brand Bengaluru” initiative. In addition, the government has set aside nearly ₹3,000 crore to tackle weather-related challenges in the state, and ₹555 crore will go towards the fifth phase of the Cauvery water supply project.
- Support for Indigenous Crops: The Budget also includes provisions to set up a seed bank dedicated to conserving 20 GI-tagged crops and other indigenous varieties, which will help preserve the state’s agricultural heritage.
New Industrial Policy and Job Creation
A new Industrial Policy for 2025-2030 has been unveiled to achieve 12% growth in the industrial sector and create 20 lakh jobs by 2030. This strategic focus aims to enhance Karnataka’s industrial footprint and generate more employment opportunities.
