The Chief Minister presented the Budget for 2025-26 in the House today. He said that the Budget is not a lifeless game of adding and subtracting numbers, but a breath of hope for the lives of seven crore people.
This budget further confirms the promise of a promising future that will fulfill the dreams of every citizen of the state. The budget was a clear reflection of Mahatma Gandhi’s vision that everyone’s welfare is possible through a sustainable and equitable economy. It reflects the government’s commitment to social and economic equality, he said.
The current monthly allowance of Rs. 12,000/- to the journalists in distress will be increased to Rs. 15,000/- and the family monthly allowance will be increased from Rs. 6,000/- to Rs. 7,500/-. For the benefit of the film industry, 150 acres of land has been reserved in Mysore to establish an international-class film city on a PPP model at an estimated cost of Rs. 500 crore. The government is committed to establishing a film city in the coming years, he said in his budget speech.
Several programs in the budget for the welfare of the people:
Along with guarantee schemes, the government has also laid emphasis on other pro-people programmes. The aim is to further strengthen the benefits provided to the weaker sections. The government will implement programmes for the welfare of various sections including Scheduled Castes, Scheduled Tribes, Backward Classes, Minorities, Women, Farmers, and Workers.
Greater emphasis on agricultural and rural development:
Agriculture, horticulture, sericulture, animal husbandry, fisheries and rural development are complementary sectors. Many schemes have been formulated with a view to their comprehensive development. Schemes to increase the income of farmers, fishermen, etc. will make a significant contribution to the future economic development of Karnataka. Efforts will be made to develop villages and increase the income of rural people through activities such as registration of agricultural and other assets, provision of infrastructure, adequate power supply.
Priority for urban development:
Special emphasis has been given to urban development projects to provide adequate infrastructure and quality services to the citizens in the rapidly growing cities of the state. Ambitious projects under the concept of Brand Bangalore are being implemented for the provision of infrastructure services and traffic arrangements in Bengaluru metropolis. Plans have been formulated to reduce the pressure on Bengaluru by developing second and third tier cities.
Investment and job creation:
New policies are being implemented in the MSME, tourism, and ITBT sectors, which generate the highest number of jobs, thereby creating an investor-friendly environment in the state, attracting more investment, and prioritizing job creation.
Transparency in governance:
Technology will be used effectively to increase efficiency and transparency in administration and to curb corruption. Administrative reform measures will be taken by simplifying civil service delivery processes and adopting an administrative transfer policy through counseling. He said that a working software will be designed and implemented to provide people-friendly and effective services.
Priority for the agricultural sector:
The Raitha Samriddhi Yojana has been implemented to make agriculture sustainable and profitable for the small and very small farmers of the state. Under this scheme, model demonstration farms of integrated farming systems will be developed in the areas under the Agriculture Department in 10 climatic zones and farmers will be promoted to adopt this system. A grant of Rs 428 crore will be provided in the budget for the year 2025-26 to provide assistance to 50 thousand farmers under the agricultural mechanization program. 6 thousand micro-processing units and 14 general incubation centers have been established in the state, and 5 thousand micro-processing units will be established in the current year.
58 laboratories will be strengthened with state-of-the-art technologies to test the soil and quality of the tools used by farmers such as fertilizers, pesticides, seeds, plant protection products, bio-fertilizers, etc. Rs. 25 crore will be provided for infrastructure development at Mandya Agricultural University and classes will be started in the current year. A new agricultural college will be established in Athani taluk of Belagavi district and an agricultural research center will be established in Muddebihal taluk of Vijayapura.
Horticulture:
Horticulture crops play a significant role in providing higher income to farmers. Horticulture Development Project-2 will be implemented with the aim of providing the farmers with the benefits of modernization in the latest cropping system, processing and value addition technology. A grant of Rs. 95 crore will be provided for this project. A feasibility report will be obtained from experts to establish a horticulture college in Dambal, Gadag district. Under the drip irrigation program, about 52 thousand beneficiaries will be provided with a subsidy of Rs. 426 crore. More than 2 lakh areca nut growers are facing difficulties due to leaf spot disease in Malnad districts. Rs. 62 crore has been provided for plant protection measures to control this disease.
Silk:
A silkworm market will be set up in Mysore in collaboration with NABARD to facilitate the silkworm farmers of Mysore and surrounding areas. The second phase of the Ramanagara and Shidlaghatta hi-tech silkworm market will be implemented at a cost of Rs 250 crore. A grant of Rs 55 crore will be provided in the current year under the Silk Development Scheme to encourage pre- and post-silkworm activities.
Animal husbandry:
The “Anugraha” scheme has been implemented to alleviate the hardship faced by farmers in case of accidental death of livestock. Under this scheme, the current compensation amount for cows, buffaloes and oxen will be increased from Rs 10,000 to 15 deaths, for sheep/goats from Rs 5,000 to Rs 7,500 and for 3 to 6 month old sheep/goats to Rs 3,500.
In 2025-26, 100 new buildings of veterinary institutions will be constructed in collaboration with NABARD. Rs 2 crore will be provided for the conservation and development of the state’s proud indigenous cattle breeds such as Hallikar, Kilari, Amrit Mahal and Bandur sheep breed. The market of the Nandini brand has been expanded and made famous at the national and international levels.
Fishing:
Rs 30 crore will be provided for the development of fishing link roads in coastal districts in collaboration with NABARD. 50 percent or a maximum of Rs 3 lakh will be provided to selected fish vendors belonging to Scheduled Castes/Tribes for the purchase of four-wheelers.
A “multi-level parking” system will be constructed under a public-private partnership to manage vehicle traffic at the Malpe Fishing Port.
Water resources:
Under the Tarikere Lift Irrigation Scheme, 49,790 acres of micro-irrigation capacity has been provided by filling 79 lakes. In the current year, by completing the Chitradurga branch canal works estimated at Rs. 2,611 crore, 30 lakes in Hosadurga, Holalkere, Jagaluru, Molakalmuru, Challakere and Pavagad taluks will be filled and micro-irrigation capacity will be provided to an area of one lakh seventy-seven thousand acres.
The preliminary preparation work of the Mekedatu Balance Reservoir Project has been finalized and the project will be implemented as soon as the clearance is received from the competent authorities of the Central Government. Uniform technical standards have been implemented in the preparation of estimates for works in the Water Resources Department.
The strength of the state’s major dam gates will be technically inspected and, if necessary, priority action will be taken to repair and replace the gates.
Small irrigation:
The project to increase groundwater by filling 45 lakes in Madhugiri taluk of Tumkur district and 62 lakes in Koratagere taluk from the Yettinahole project will be implemented at a cost of Rs. 553 crore. In the current year, new works worth Rs. 2,000 crore will be taken up under small irrigation projects across the state such as modernization of lakes, dams and pickups, Kindi dams, lift irrigation, revival of dormant projects, etc.
School education:
It is proposed to expand the Karnataka Public Schools started during the previous term of our government to provide quality education from pre-primary to pre-university level under one roof. With the assistance of Asian Development Bank, 500 new Karnataka Public Schools will be started at a cost of Rs. 2,500 crore.
The monthly honorarium currently being given to guest teachers of government primary and secondary schools and guest lecturers of government pre-university colleges will be increased by Rs. 2,000 each.
The monthly honorarium given to the staff preparing hot meals in government schools will be increased by Rs. 1,000 each. 100 eligible government higher primary schools in the state will be upgraded to high schools and 50 high schools to pre-university colleges.
Bilingual sections will be started in 4,000 government schools in the state to develop English language skills along with the mother tongue among the students. Under the Mid-day Meal Scheme, Rs. 46 crore will be spent on kitchen modernization and provision of new utensils in 16,347 schools in the state. Under the Akshara Avishkar Scheme in the Kalyana Karnataka region, 50 selected schools will be upgraded to well-equipped KPS schools at a cost of Rs. 200 crore.
Higher education:
To provide quality higher education, a Rs 2,500 crore project is proposed to be implemented with the assistance of the World Bank in the next four years for the purpose of strengthening the first-class colleges of the state, establishing centers of excellence in educational institutions and increasing research capacity. Bangalore City University will be renamed as Dr. Manmohan Singh Bangalore City University. Government Arts College and Government RC Colleges will be developed as constituent colleges of the university.
Steps will be taken to fill up 2,000 vacant teaching posts in government first-grade colleges, engineering colleges and polytechnics. Necessary infrastructure will be provided to government engineering colleges, polytechnic institutions and degree colleges in the state at a total cost of Rs 275 crore. A unit college of Visvesvaraya Technological University will be established in Chintamani taluk of Chikkaballapur district at a cost of Rs 158 crore.
Department of Health and Family Welfare
Rs 320 crore has been provided to take action in the form of a campaign to reduce the preventable maternal mortality rate to zero in the state.
Necessary equipment will be provided to prevent and treat severe bleeding during pregnancy and childbirth. Maternity services will be strengthened through innovative digital technology.
A total of 2.61 lakh tests have been conducted and 32,630 neurological patients have been treated under the Karnataka Brain Health Initiative for neurological diseases in collaboration with NIMHANS. Rs 20 crore has been provided this year to extend this scheme to all levels of health centres. In addition, health centres will be set up in district level hospitals in collaboration with non-government organisations to take care of the mentally ill.
Primary health centers in newly declared taluks like Hanur, Alnavar, Annigeri, Maski, Siriwara, Kaup, Babaleshwar, Kolhara, Chelur, Teradala will be upgraded to Community Health Centers. A new Community Health Center will be started in Ponnampet.
The taluk level hospitals of Malur, Magadi, Kushalnagar, Koratagere, Jagalur, Savanur, Ramadurga and Savadatti, as well as the Davangere District Hospital and Wenlock Hospital in Mangalore will be renovated at a total cost of Rs. 650 crore.
A scheme has been formulated to provide cashless treatment up to Rs. 5 lakh to more than three lakh staff members and dependents working on contract, outsourced and honorarium basis in various government departments. The staff will contribute Rs. 100 per month and the government will contribute Rs. 200 per month and it will be implemented through Suvarna Arogya Trust. The honorarium will be increased by Rs. 1000 by providing team-based incentives to ASHA workers.
Medical education
It is proposed to start a medical college as a unit of Rajiv Gandhi University of Health Sciences in Bagalkot and a medical college on a public-private partnership basis in Kolar. A cancer detection department will be started in the Bidar Government Medical College Hospital.
A 500-bed hospital will be completed at Bowring and Lady Curzon Hospital at a cost of Rs. 297 crore. Well-equipped trauma care centers will be set up at Kulageri Cross and Chitradurga in Badami taluk.
Regional Endocrinology Centers will be set up under the jurisdiction of Mysore and Kalaburagi Medical Colleges at a total cost of Rs. 100 crore. A super specialty hospital will be set up under the Koppal Institute of Medical Sciences at a cost of Rs. 100 crore.
Women and Child Development
The honorarium of Anganwadi workers, who play a major role in the care and education of 37 lakh children in the state, will be increased by Rs. 1,000 and that of helpers by Rs. 750. Under the Saksham Anganwadi Scheme, a total of Rs. 175 crore will be provided at the rate of Rs. 1 lakh each to provide additional facilities to 17,454 Anganwadi centers in the state. Rs. 10 crore has been set aside for the purchase of 173 CA sites available in the Municipal Councils/Municipalities at a concessional rate of 50% from the Urban Development Department for the construction of Anganwadi buildings.
The Government School for Hearing Impaired Children in Bellary and the School for Visually Impaired Children in Hubli will be upgraded from primary school level to high school level. The dietary allowance of residential schools running under state grants will be increased to Rs 1750 per month. A total of Rs 94,084 crore will be provided for women-oriented programs in the year 2025-26.
Social Welfare
Under the Karnataka Scheduled Caste Sub-Plan and the Tribal Sub-Plan, a total of Rs. 42,018 crore has been provided for the year 2025-26, including Rs. 29,992 crore for the Scheduled Caste Sub-Plan and Rs. 12,026 crore for the Tribal Sub-Plan.
26 new residential schools will be started for Scheduled Castes and Scheduled Tribes in the hoblis where there are no residential schools. Scheduled Caste and Scheduled Tribe students studying in government and private medical and engineering colleges who have taken admission in the hostels of the same college have been paid a hostel fee of Rs. 3,500.
Nutritious food kits are being provided to 47,859 families of 12 Scheduled Tribe communities living in the forests and forest margins. It is proposed to establish a tribal museum in the premises of the Tribal Research Centre in Mysore city to introduce the state tribal culture. Special direct recruitment will be made for the representation of 13 tribal communities living in the forest margins such as Jenu Kuruva, Iruliga, Koraga, Soliga, Yarava, Panian, Halasaru, Gaudaru etc. in the civil services.
Rs. 50 crore will be provided to provide necessary infrastructure to backward class girl students. The National Foreign Scholarship given to minority girl students has been increased from Rs. 20 lakh to Rs. 30 lakh.
With the aim of developing the rural road connectivity network systematically and qualitatively, it has been announced in the last year’s budget to launch the Pragatipath Road Development Project with external assistance at a cost of Rs 5200 crore. This project will be implemented in the year 2025-26. The government has provided Rs 6050 crore for the Jaljeevan Mission project for the year 2025-26.
A new Tourism Policy 2024-29 has been implemented to harness the vast opportunities and potential of the tourism sector in the state. The policy, which aims to make the tourism sector a priority sector through promising and sustainable development, is expected to attract an investment of Rs 8000 crore in the state and create 1.5 lakh jobs. 25 monuments have been adopted to create the infrastructure required for the conservation of the monuments of the state.
The services of athletes who have won medals at the Olympics, Commonwealth and Asian Games will be sought as mentors in various sports organizations.
E-Jamabandi software will be developed to directly manage the Jamabandi process, a method of locking and securing land records at the village and taluk levels.
Under the Disaster Relief Program, the Minor Irrigation Department has implemented 41 lake works in Bangalore Rural District at a cost of Rs. 250 crore.
An advanced attendance system will be introduced in all departments using cutting-edge technology such as Artificial Intelligence (AI) and Geographic Information Systems.
About 50 thousand crores have been disbursed through DBT so far, and in the coming year, all the government’s cash and cashless schemes will be implemented through DBT.
Rs 5300 crore has been provided under the Shakti Yojana for the year 2025-26.
It is proposed to set up a special fast-track court for land acquisition in Bagalkot district to dispose of the cases filed in the courts regarding land acquisition under the Upper Krishna Project and provide appropriate relief.
The revenue collection target of the Commercial Tax Department for the year 2025-26 has been set at Rs 1 lakh 20 thousand crore. Similarly, the Excise Department has been given a collection target of Rs 40 thousand.
With the vision of equality for all, the Chief Minister has presented the budget for the year 2025-26, aiming at the development of the people of the state by providing necessary funds to all departments, according to the needs of all sectors.
CII Karnataka welcomes the Karnataka State Budget 2025, lauding its strong focus on Sustainability, Innovation, and Regional Economic Growth.
07 March 2025, Bengaluru
Mr N. Venu, Chairman, CII Karnataka stated “Karnataka’s budget takes a decisive step toward a sustainable and energy-secure future, with a strong emphasis on renewable energy, smart infrastructure, and green mobility. The focus on expanding solar parks, strengthening the power grid, and promoting electric vehicles will significantly contribute to Karnataka’s clean energy transition. Beyond Bengaluru, the push for industrial development in emerging hubs will drive economic growth while ensuring environmental responsibility. By prioritizing sustainability alongside economic expansion, this budget lays the foundation for long-term resilience and energy security. CII Karnataka commends the government’s strategic vision in fostering a greener, more balanced development model for the state.”
Mr Rabindra Srikantan, Vice Chairman CII Karnataka cited “Karnataka’s budget outlay surpassing ₹4 lakh crore for the first time marks a transformative step in the state’s economic journey. In his 16th budget, Hon’ble Chief Minister Siddaramaiah has laid a strong foundation for fostering artificial intelligence, digital innovation, and entrepreneurship. The launch of the Karnataka AI Innovation Hub and the Local Economy Accelerator Program (LEAP) will not only reinforce Karnataka’s position as a global technology leader but also create vast employment opportunities beyond Bengaluru, driving inclusive growth. CII Karnataka commends the government’s strategic vision in strengthening the state’s digital and manufacturing ecosystem, ensuring sustainable economic progress. This budget paves the way for an innovation-led future, positioning Karnataka as a premier investment destination.”
Adding to this, Mr Nagaraja Gargeshwari, Chairman, CII Mysuru Zone, said, “The establishment of new IT hubs in Mysuru and Hubballi is a welcome move that will attract tech investments.”
Mr Mahesh Bhirangi, Chairman, CII Belagavi District Council, acknowledged the State Government’s decision to establish new Global Technology Centres in Hubballi and Belagavi, stating, “This is a commendable step towards fostering the startup ecosystem.”
Mr Natraj Hegde, Chairman, CII Mangaluru District Council, appreciated the allocation of ₹200 crore for tourism infrastructure in Udupi, Mangaluru, and Karwar, and KEONICS’ decision to establish a new Global Technology Centre in Mangaluru. “This initiative will significantly boost the region’s economic and technological landscape,”
CII Karnataka applauds the government’s commitment to holistic growth, sustainability, and technological advancement, reinforcing the state’s position as an economic powerhouse.