The total outlay of the Karnataka State budget for 2024-25 is pegged at ₹3,71,383 crore, as against a revised estimate of ₹3,12,708 crore for 2023-24.
Chief Minister Siddaramaiah has earmarked ₹52,000 crore for the implementation of five guarantee schemes of Shakti, Gruha Jyoti, Gruha Lakshmi, Yuva Nidhi and Anna Bhagya in 2024-25. “An average of ₹50,000 to ₹55,000 is transferred to each family every year through guarantee schemes,” Mr. Siddaramaiah said while putting up an impassioned defence of the schemes.
Karnataka Budget 2024-25: LIVE coverage
While the Chief Minister has not increased any taxes, he has presented a revenue deficit budget with the net borrowings crossing ₹1 lakh crore, perhaps for the first time in a year.
Of the ₹3,71,383 crore outlay for 2024-25, total revenue receipts of ₹2,63,178 crore is estimated for 2024-25, out of which ₹1,89,893 crore is State’s own tax revenue, and ₹13,500 crore is from non-tax revenue sources. A total of ₹44,485 crore under tax devolution and ₹15,300 crore as grant-in-aid is estimated to be received from Government of India. In addition to these revenue receipts, gross borrowings of ₹1,05,246 crore, non-debt capital receipts of ₹38 crore, and recovery of loans of ₹213 crore is estimated. Total receipts estimated in the budget for 2024-25 is ₹3,68,674 crore.
This is a revenue deficit budget with the deficit pegged at ₹27,354 crore. The State budget had gone into revenue deficit during the COVID-19 pandemic years, but had recovered and become revenue surplus in 2023.
This is also perhaps the first time the borrowings in a year has crossed the ₹1 lakh crore mark in a particular fiscal year, sources said. Total liabilities of the State are pegged at ₹6,65,095 crore, which is 23.68% of GSDP. The fiscal deficit for 2024-25 is estimated to be ₹82,981 crore, which is 2.95% of GSDP. Both are within the limits mandated under Karnataka Fiscal Responsibility Act, 2022.
For 2024-25, total expenditure is pegged at ₹3,71,383 crore, which includes revenue expenditure of ₹2,90,531 crore, capital expenditure of ₹55,877 crore, and loan repayment of ₹24,974 crore. Capital expenditure has risen from ₹54,374 in the previous budget, while loan repayments have also risen from ₹22,441 crore.
Chief Minister Siddaramaiah has not increased any tax in his budget, while he has set higher revenue targets, as compared to previous years. However, he said, “In order to rationalise the tax slabs and make them competitive with neighbouring States, the tax slabs for IML and beer will be revised.”
