Karnataka Budget 2025 Highlights: Karnataka Chief Minister Siddaramaiah presented his 16th Budget in the Karnataka Assembly today, with a strong focus on industrial development, welfare schemes, infrastructure, education and healthcare. The total expenditure for the 2025-26 budget is estimated at Rs 4,09,549 crore, including revenue expenditure, capital expenditure, and loan repayment. Siddaramaiah said there is no doubt that this budget will be a beacon for the comprehensive development of the state for the next one year.
Karnataka’s state GDP recorded a 7.4% growth, surpassing the national growth rate of 6.2%, while the agriculture sector grew by 4%. The government has allocated Rs 1,800 crore for 21 projects under Brand Bengaluru, along with Rs 3,000 crore to tackle weather-related challenges and Rs 555 crore for Phase 5 of the Cauvery water supply project.
To enhance urban mobility, Bengaluru’s metro network will be extended to Kempegowda International Airport. Additionally, a 18.5 km long North-South tunnel will be developed from Hebbal Esteem Mall to Silk Board Junction at an estimated cost of Rs 15,000 crore, aiming to ease traffic congestion in the city.
Karnataka Budget 2025 Highlights: Read all the latest updates on Karnataka Budget 2025 here!
Karnataka Budget 2025 Live: Rs 200 crore for LEAP program
The Karnataka Budget for 2025-26 has allotted Rs 200 crore out of the Rs 1,000 crore budget to start the LEAP program (Local Economy Accelerator Program) in cities outside of Bengaluru. The program focuses on promoting innovation and business growth. The goal of the program is to create five lakh jobs across the state.
Chief Minister Siddaramaiah wrapped up his Budget presentation after nearly 3 hours and 30 minutes, starting at 10:15 am. The 76 year old CM barely took even a sip of water during the entire speech. He ended the speech with ‘Jai Hind’ and ‘Jai Karnataka’, following which the Speaker adjourned the House till Monday. Congress legislators gathered around the CM to congratulate him on delivering the budget.
Karnataka Budget 2025 Live: Key announcements and highlights
33 special police stations established to curb atrocities against SC/ST communities
Rs 559 crore approved for SC colony infrastructure; Rs 222 crore set aside for 2025-26 completion
Vijayapura Airport to be operational by 2026
Rs 873 crore allocated for Kalyana Karnataka health initiatives to enhance infrastructure and services
Children and Women Development Department receives Rs 34,995 crore allocation
Anganwadi workers’ honorarium increased by Rs 1,000, helpers by Rs 750; benefits 37 lakh children
Gruha Lakshmi scheme disbursed Rs 28,608 crore to 1.22 crore women in 2024-25
100 government primary schools to be upgraded to high schools, and 50 to PU colleges
61 KREIS residential schools to get dedicated buildings with Rs 1,292 crore allocation
Bengaluru traffic relief: 40.5 km double-decker flyover & 300 km new roads planned
State guarantees Rs 19,000 crore for BBMP’s Rs 40,000 crore tunnel corridor project
Namma Metro to be extended to Devanahalli (Airport connectivity)
Rs 40,000 crore tunnel roads project planned for Bengaluru
Mangaluru to launch Karnataka’s first water metro
Namma Metro network to expand by 98.6 km within two years
Bengaluru Business Corridor: Rs 27,000 crore plan for 73 km road; land acquisition in progress
Temple priests’ annual salaries hiked from Rs 60,000 to Rs 72,000
28.5 km tunnel from KR Puram to Nayandanahalli at Rs 28,000 crore
Residential schools for construction workers’ children to be built in 31 districts at Rs 750 crore
Deposit of Rs 1 lakh waived for 12,153 beneficiaries under CM’s 1 Lakh Housing Scheme
Karnataka Housing Board to develop 16,140 plots in Suryanagar Phase-IV, Bengaluru
Anna Bhagya Scheme to provide 5 kg additional rice instead of cash transfer, benefiting 4.21 crore people
Mysuru to get Rs 500 crore International Film City under PPP model
8% interest subsidy on loans up to Rs 1 lakh for street vendors under PM Swanidhi
Total expenditure for 2025-26 estimated at Rs 4.09 lakh crore
Karnataka Budget 2025 Live: Important announcements by CM Siddaramaiah
New Tourism Policy 2025: ₹8,000 crore investment, aims to create 1.5 lakh jobs
Weavers Package 2.0: Focus on financial self-reliance, merges all existing schemes for weavers into one comprehensive package
Gruha Jyothi Scheme: 1.62 crore consumers registered, with ₹10,100 crore allocation for the year 2025-26
Karnataka will upgrade 4,420 km of highways and district roads with an investment of Rs 4,848 crore in 2025-26. Additionally, 39 weak bridges will be revamped at a cost of Rs 1,000 crore, and Rs 20 crore has been earmarked for repairing rain-damaged roads in Kodagu.
For railway projects, Karnataka has allocated Rs 600 crore for 2025-26. The state is partnering with Indian Railways on nine projects under a 50:50 cost-sharing model, contributing Rs 9,847 crore out of the total project cost of Rs 16,235 crore.
The Bengaluru Suburban Railway Project is progressing with a total investment of Rs 15,767 crore, featuring a 148 km network with 58 stations, aimed at easing urban transit and reducing congestion.
Karnataka Budget 2025 Live: New Industrial Policy Targets Investment & Jobs
Karnataka’s New Industrial Policy 2025-30 aims to attract Rs 7.5 lakh crore investment and generate 20 lakh jobs. The policy focuses on creating a business-friendly environment by promoting industries and boosting employment. To ease compliance for industries, the government will introduce Karnataka Employer’s Compliance Decriminalisation Bill and Karnataka Employer’s Compliance Digitisation Bill, making Karnataka the first state in India to decriminalise employer violations and fully digitise compliance processes.
Karnataka Budget 2025 Live: Karnataka targets 60 GW power capacity, announces key projects for expansion
To meet Karnataka’s rising electricity demand, the state aims to increase installed capacity from 32 GW to 60 GW. In 2022-23, capacity already rose from 31.83 GW to 34.99 GW. Plans are in place to operationalize the long-pending Godhna Thermal Power Plant, with 800 MW capacity at a cost of Rs 13,000 crore, through Tariff-Based Competitive Bidding.
The Sharavathi Pumped-Storage Power Plant, with a capacity of 2,000 MW and a cost of Rs 10,240 crore, is awaiting MoEF clearance, and the tender process has started. To boost renewable energy, a 1,000 MWh battery storage facility will be developed across seven substations by KPTCL under a Public-Private Partnership (PPP) model at a cost of Rs 1,846 crore.
Karnataka Budget 2025 Live: Water Transport Boost
Karnataka has approved the Water Transport Policy to drive coastal infrastructure development. The government is committed to streamlining boating activities and enhancing coastal connectivity. A detailed action plan will be prepared for international cruise operations, water metro projects, coastal berth facilities in Mangaluru, a new port at Manki, and a shipyard in Honnavar, along with river tourism development across the state’s coastal belt.
Karnataka Budget 2025 Live: Airport Development Push
Vijayapura Airport, being built at a cost of Rs 348 crore, will be operational by 2025-26. For Raichur Airport, Rs 53 crore has been released towards construction, part of the total project cost of Rs 219 crore.
The land acquisition process for the Karwar Naval Airport is underway, and required funds will be allocated this year to kickstart the works.
Additionally, Rs 319 crore has been released for land acquisition to expand the runway at Mysuru Airport, with utility shifting works to follow soon.
The government will support BBMP and BWSSB with Rs 3,000 crore to develop a systematic drainage network and Sewage Treatment Plants (STPs) to mitigate climate change-induced flooding in Bengaluru.
The Peripheral Ring Road project has been renamed ‘Bengaluru Business Corridor’, with a Rs 27,000 crore plan to develop a 73 km road in collaboration with HUDCO Bank. Dedicated teams have been formed to accelerate land acquisition.
Under ‘Brand Bengaluru – Green Bengaluru’, BBMP is working on reviving 14 lakes at a cost of Rs 35 crore, while BDA is leading the Varthur and Bellandur lake rejuvenation at Rs 234 crore.
Namma Metro to increase its connectivity by adding 98.60 km additional routes to the network in the next two years, from the present 79.65 km of rail network.
Karnataka Budget 2025 Live: Major Traffic Easing Projects for Bengaluru
To reduce congestion and ensure smoother traffic flow, Bengaluru will get a 40.5 km double-decker flyover built alongside Namma Metro Phase-3, with an investment of Rs 8,916 crore.
Additionally, 300 km of new roads will be developed at a cost of Rs 3,000 crore by utilizing canal buffer zones.
The arterial and sub-arterial road network covering 460 km in the BBMP area will also be upgraded for Rs 660 crore, and flyovers and grade separators totaling 120 km will be constructed across the city.
Karnataka Budget 2025 Live: Karnataka allocates Rs 6,050 crore for Jal-Jeevan Mission in 2025-26
Under the Jal Jeevan Mission, aimed at providing safe and adequate drinking water through household tap connections, the Central Government has released Rs 11,787 crore so far, while the State Government has contributed Rs 20,703 crore.
In 2024-25, the Centre released Rs 571 crore out of the Rs 3,800 crore allocation. To accelerate implementation, the State Government has advanced Rs 8,400 crore and will further allocate Rs 6,050 crore in 2025-26.
Karnataka Budget 2025 Live: Pragati Patha Scheme
The Pragati Patha Scheme, introduced in the 2024-25 Budget as an externally aided project, will roll out in 2025-26 with a budget of Rs 5,200 crore, aiming at systematic and quality enhancement of rural road connectivity across the state.
Karnataka Budget 2025 Live: Enhanced Aid for Laborers’ Families
Education and medical assistance for registered laborers and their dependents under the Labour Welfare Boards will be doubled, providing greater financial support for their well-being and education.
Karnataka Budget 2025 Live: Rural Development Initiatives under MGNREGA
Grey water management units will be set up in 500 villages to manage wastewater.
Spice and fruit crops will be cultivated across 5,000 acres under a mixed crop system, in partnership with rural self-help groups.
5,000 km of state and district roads passing through rural areas will be lined with saplings to enhance greenery.
‘Krishi Patha’ scheme will be introduced to develop farm access roads in a phased manner.
Krishi Kavacha Scheme will focus on groundwater recharge and soil conservation by constructing bunds across 50,000 hectares of farmland.
Karnataka Budget 2025 Live: Financial Aid for Backward Class Entrepreneurs
Unemployed individuals from Backward Class Communities will receive financial assistance of up to Rs 3 lakh per person.
The aid will help beneficiaries purchase electric four-wheelers or set up food kiosks, enabling self-employment and entrepreneurship.
Karnataka Budget 2025 Live: PMAY-U Beneficiary Contribution Reduced
Under Pradhan Mantri Awas Yojana (Urban), the beneficiary contribution has been slashed to Rs 1 lakh, with the state government contributing Rs 5 lakh on their behalf.
The Karnataka Slum Development Board has approved the construction of 1,80,253 houses, of which 86,651 houses have already been completed. The remaining houses will be fast-tracked to ensure timely completion.
Karnataka Budget 2025 Live: Religious Grants for Minority Communities
The government has allocated Rs 100 crore for the comprehensive development of Jain, Buddhist, and Sikh communities, along with Rs 250 crore for the development of 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 across the state for minority communities to host cultural and social events. 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.
Karnataka Budget 2025 Live: Total Expenditure Outlook
The total expenditure for 2025-26 is projected at Rs 4.09 lakh crore. 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.
Karnataka Budget 2025 Live: Receipts and Revenue Estimates
The total receipts for Karnataka Budget 2025-26 are projected at Rs 4.08 lakh crore. 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 expects 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 for the financial year 2025-26.
13 tribal communities to receive direct employment opportunities in state civil services.
New Trauma Care Centres to be established in Badami and Chitradurga.
Mandya to get a new Agricultural University.
Total borrowings for the year pegged at Rs 1.16 lakh crore.
Japanese Industrial Park to be developed in Tumkur.
Organic and Millet cultivation to receive Rs 20 crore support.
Weavers to get Rs 100 crore assistance.
Powerloom weavers with setups up to 20 HP (increased from 10 HP) will now be eligible for subsidy and support.
Fast food trucks to be provided to SC youth under an entrepreneurship scheme.
New textile parks to be set up in Karkala, Ranibennur, Raichur, Kadur, and Chikmagalur.
47,859 tribal families to receive nutritious food kits under a Rs 120 crore scheme.
Eligible students selected for admission at prestigious institutions like London School of Economics (LSE) and Columbia University will receive Rs 1 crore in financial support. To enhance educational opportunities for marginalized communities, 31 residential schools catering to SC/ST and backward class students will be upgraded to PU colleges. Additionally, 61 KREIS residential schools will get their own buildings at a cost of Rs 1,292 crore. The government has also sanctioned Rs 120 crore for student scholarships, ensuring the continuation of this vital program. Commerce stream will be started in 62 Morarji Desai Residential Schools for Minorities in the state in which PU classes were started in the year 2023-24. 16 new women’s colleges to be established in Waqf institution plots in 2025-26. A Buddhist Study Academy will be set up in Bengaluru to promote research and learning. Additionally, the 100-year-old library at the Mahabodhi Study Centre in Bengaluru will be digitalized and upgraded at a cost of Rs 1 crore.
Rs 7,145 crore allocated to the Agriculture Department in the Budget.
Special training programs to be provided for minority students to prepare for competitive exams.
Modern centralised bus station to be developed at Bannimantap, Mysuru.
49,790 acres brought under micro-irrigation, with plans to develop 30 more lakes to increase irrigation capacity by 1,77,000 acres.
New Rajiv Gandhi Health University to be established in Belagavi.
500 new Karnataka Public Schools to be established at a cost of Rs 2,500 crore, with Asian Development Bank support.
Rs 234 crore allocated for lake preservation and development in Bengaluru.
Monthly honorarium for government school cooks to be increased by Rs 1,000.
Guest teachers and lecturers to receive an additional Rs 2,000 as monthly honorarium.
Badami Chalukya Utsav celebrations to receive Rs 2 crore government support.
Karnataka Budget 2025 Live: Housing, Welfare & Women Empowerment Initiatives
The Karnataka Housing Board (KHB) will develop over 16,140 sites in Suryanagar, Anekal Taluk of Bengaluru. Landowners who surrender land for development will receive 50% of the developed land, with the remaining sites to be sold or allotted to the public. To strengthen food security, new fair price shops will be opened to distribute subsidised rice under the ‘Anna Bhagya’ scheme. Additionally, the state will establish the ‘Akka (Sister) Cooperative Society’ to support women entrepreneurs, and all beneficiaries of the Gruha Lakshmi scheme — receiving Rs 2,000 per month — will be integrated into Stree Shakti Sanghs to further promote women's empowerment.
Karnataka Budget 2025 Live: Boost to Healthcare, Rural Development & Animal Husbandry
A new nursing college will be established in Yadgir, along with nursing colleges in Kalburgi and Jevargi, strengthening healthcare education in the region. The government has also allocated Rs 26,735 crore for rural development, focusing on improving infrastructure and livelihoods in rural areas. In the field of animal husbandry, 50 new veterinary clinics will be set up across the state in 2025-26, with plans to establish 100 veterinary institutions with the support of NABARD, enhancing veterinary care in rural Karnataka.
Karnataka Budget 2025 Live: Support for Silk Farmers & Urban Development
A silkworm market will be established in Mysore in collaboration with NABARD, providing better market access for silk farmers in Mysore and nearby regions. Additionally, Rs 2,000 crore will be allocated to Mahanagara Palikes to support urban development initiatives. To further promote silk farming, Rs 55 crore has been earmarked this year under the Pre- and Post-Silkworm Activity Development Scheme, aiming to expand silk cultivation across the state.
Karnataka Budget 2025 Live: Enhanced Safety Measures for Bengaluru
To strengthen safety and security across Bengaluru, the government will establish 60 additional women-only police stations. Furthermore, 7,500 CCTV cameras will be installed at key locations across the city to enhance surveillance. A total of Rs 667 crore has been allocated to improve safety infrastructure and bolster law enforcement capabilities in Bengaluru.
Karnataka Budget 2025 Live: Subsidies for industrial and manufacturing sector
Our government is dedicated to promoting job-oriented and inclusive growth in the industrial and manufacturing sectors. To drive this vision, the state has introduced the Industrial Policy 2025-30, with a target of achieving 12% industrial growth and generating 20 lakh jobs by 2030. This year, the industrial sector has already recorded a 5.8% growth. To further attract large-scale investments, the government has committed Rs 13,692 crore towards financial assistance and subsidies.
Liquor prices likely to be reviewed and increased to match rates in neighbouring states.
Excise tax collection last year stood at Rs 36,500 crore; target set at Rs 40,000 crore for the coming year.
Over 2 lakh areca nut growers in Malnad affected by leaf spot disease; Rs 62 crore allocated for crop conservation.
Ex-gratia for construction workers who die on the job increased from Rs 75,000 to Rs 1.5 lakh.
Residential schools to be built for children of construction workers.
CM Siddaramaiah quotes Savitribai Phule, emphasizing education as a tool to break caste barriers.
Karnataka Budget 2025 Live: Rs 50 crore grant for the tourism sector
The government will allocate Rs 50 crore to boost the tourism sector, focusing on developing tourist destinations across 10 districts. Special attention will be given to enhancing the beaches in Dakshina Kannada, Udupi, and Uttara Kannada. Improving road connectivity in coastal areas will be prioritized to make travel easier for tourists. Basic amenities will also be upgraded at Belur, Halebidu, and Somnathpur. The goal is to expand the network of trained Tourist Friends to 1,000. Additionally, efforts will be made to secure World Heritage Site status for the historic temples of Lakkundi.