Karnataka Budget 2025 Highlights: 1,800 crore for Brand Bengaluru, liquor prices likely to be increased, says CM Siddaramaiah

Karnataka Chief Minister Siddaramaiah said, “The government acknowledges the decisive role of the infra sector in driving the state’s holistic economic growth and has provided substantial funding for capital expenditure in the current year. This is underscored by an 47.3 per cent increase (in capital expenditure).”

Experts to be recruited for setting up a new agricultural college in Belagavi.

Rs 50,000 support for minorities opting for simple marriages.

Bengaluru Haj Bhavan to get additional facilities.

Government commits to transparency; counselling to be introduced for revenue department transfers.

Rs 250 crore allocated for Christian community development.

Gurudwara to receive Rs 2 crore grant for facility development.

Rs 95 crore allocated to boost horticulture through advanced farming technology.

Multispeciality hospital to be set up in Koppal.

Chief Minister’s Infrastructure Development Program launched with Rs 8,000 crore to boost state development.

Rs 150 crore allocated for upkeep of Waqf properties and Muslim graveyards.

Knowledge Bank to be established at IISc to educate farmers on production, crop health, and markets.

25,000 students in 169 minority hostels to receive self-defense training.

New Kidwai (Nephrology) Hospital to be established in Raichur.

New Industrial Training Institutes (ITIs) to be set up in minority-dominated areas.

State support for eligible minority students studying abroad increased from Rs 20 lakh to Rs 30 lakh.

Non-tax revenue for 2024-25 is expected to reach Rs 14,500 crore, surpassing annual targets. This marks a 10.5% growth compared to the previous year. However, non-tax revenue as a percentage of GSDP and own tax revenue has remained stagnant in recent years. Significant potential exists for further growth in non-tax revenue.

New Buddhist School of Studies to be established in Bengaluru.

Media personnel to be covered under the Sanjeevini health scheme.

Gandhi Krishi Vigyan Kendra (GKVK), Bengaluru, to conduct research on immune traits and crop resilience.

Focus on organic products and grains to bridge demand-supply gap and benefit farmers.

Rs 300 crore allocated to reduce child and maternal mortality.

New Medical College to be set up in Puttur, Dakshina Kannada district.

Organic and grain hub to be developed with an investment of Rs 20 crore.

A 18.5 km long North-South tunnel, connecting Hebbal Esteem Mall to Silk Board Junction, will be constructed at an estimated cost of Rs 15,000 crore to help ease Bengaluru’s traffic congestion. Additionally, a 28.5 km tunnel from KR Puram to Nayandanahalli is planned, with a project cost of Rs 28,000 crore.

The government has initiated several measures to strengthen the state’s education system. As part of this effort, 50 high schools will be upgraded, and 500 new government schools will be established. Furthermore, 100 government primary schools will be provided with additional facilities to enhance their infrastructure. To improve accommodation for students, Rs 25 crore has been allocated for hostel repairs. In addition, agricultural education will receive a boost with the establishment of a new agricultural college in Athani.

A total of Rs 1,800 crore has been earmarked for 21 projects under the Brand Bengaluru initiative. Additionally, Rs 3,000 crore has been set aside to address weather-related challenges and enhance the city’s drainage and sewage treatment infrastructure. Another Rs 555 crore has been allocated for the fifth phase of the Cauvery water supply project, which aims to provide drinking water to 110 villages. Over the next two years, the Bengaluru Metro network will also be expanded to 98.60 km, with improved connectivity to Devanahalli.

New sports science research centres to be established in Belagavi and Mysuru.

Upper Bhadra Irrigation Project allocated Rs 5,300 crore in the budget.

4% reservation for Muslims introduced in government tenders and contracts.

Annual salary of temple priests increased from Rs 60,000 to Rs 72,000.

Jain, Buddhist, and Sikh Development Corporations each granted Rs 100 crore.

Centralised accommodation booking system to be implemented for temple stays.

Film production to be officially recognised as an industry to attract investments.

State to float own OTT to help develop Kannada language programmes.

Bengaluru City to get Rs 40,000 crore worth tunnel road projects to tackle traffic congestion. Additionally, Bengaluru Metro to be extended up to Devanahalli, connecting directly to the airport.

Toor Dal Support Price: Rs 450 per quintal to encourage cultivation

Anganwadi Workers: Honorarium increased by Rs 1,000 per month

Tax Share Demand: CM stresses Karnataka must get rightful share of central taxes

Gruha Jyoti Scheme: Rs 10,100 crore allocated for 200 units of free power

Foreign Investments: Karnataka ranks 3rd, attracting $4.4 billion in 2024-25

Modern Flower Market: Coming up in Chikkaballapur

Hitech Fisheries Darshini: Planned for Mysuru

Mega Dairy: Rs 50 crore investment for Kalaburagi (Kalburgi)

Multiplex Ticket Cap: Maximum ticket price fixed at Rs 200 across the state

In a bid to accelerate economic growth and generate employment, the government has introduced targeted policies across key sectors such as industries, IT, tourism, and biotechnology. These initiatives aim to harness the state’s human capital while attracting investments worth approximately Rs 1 lakh crore. To support this push, the government has allocated Rs 13,500 crore in subsidies and financial assistance, ensuring businesses and industries receive the necessary support to thrive and expand.

Bengaluru University has been officially renamed Dr Manmohan Singh Bengaluru University as a tribute to the former Prime Minister and renowned economist.

Karnataka’s agriculture sector has witnessed over 3.8% growth, driven by favourable monsoons and proactive government initiatives supporting sowing and irrigation. Ample rainfall and well-filled reservoirs have further contributed to this robust growth in 2024-25.

The government will develop 500 public schools at an estimated cost of Rs 2,500 crore, aiming to enhance learning environments across the state. To combat malnutrition, school children will receive an egg or banana six days a week under a nutrition initiative set to benefit 53 lakh students across Karnataka.

The state’s economic growth has outpaced the national average, cementing its position as one of the fastest-growing states in the country. In 2024-25, Karnataka recorded an impressive 7.4x economic growth, further strengthening its role as an economic powerhouse.

In a major education push, 500 government public schools will undergo comprehensive development at a cost of Rs 2,500 crore.

The budget earmarks Rs 8,916 crore for Bengaluru’s development, aiming to enhance the city’s infrastructure and public services.

Education and healthcare were identified as priority sectors, with increased allocations aimed at improving access and quality. Additionally, the budget seeks to enhance infrastructure in cities and towns, with greater financial support directed towards urban development to address growing civic challenges. CM said the government will develop Tier 2 and Tier 3 cities to take pressure of Bengaluru.

Siddaramaiah emphasised that the progress of the state is closely tied to the empowerment of women and the creation of social equity, ensuring benefits reach all sections of society. The Chief Minister further highlighted the government’s commitment to strengthening support for marginalised communities, including Scheduled Castes, Scheduled Tribes, minorities, and women.

CM Siddaramaiah defends guarantee schemes, calls them a step towards social justice. Siddaramaiah strongly defended the state’s flagship guarantee schemes, stating they are not “free gifts,” but essential measures aimed at easing the hardships faced by the poor.

Chief Minister Siddaramaiah opened his 2025-26 budget presentation by reciting verses from Rashtra Kavi Kuvempu and other renowned poets, adding a literary touch to the proceedings. Evokes the ideals of Dr. B.R. Ambedkar, Buddha, Basavanna, and Narayana Guru towards ensuring social justice. 

Due to his ongoing recovery from knee surgery, the CM requested permission from the Speaker to deliver the budget speech while seated — a rare gesture that set the tone for the session.

“Today, I am ready to present the 16th budget of my political career. I am grateful to all the people of Karnataka for giving me the opportunity to present the budget of this state sixteen times,” said CM Siddaramaiah ahead of budget presentation on platform X.

“Believing in the aspirations of Buddha, Basava, Gandhi and Ambedkar, and acting accordingly, we have made an effort to take a further step towards realizing the dream of an equal society through this budget. There is no doubt that this budget will be a beacon for the comprehensive development of the state for the next one year, ” CM added.

Ahead of the state budget, Karnataka DCM DK Shivakumar says, “BJP should answer what they have given to Karnataka. They don’t have guts, voice, strength, and the moral right to save Karnataka. In the central budget, nothing was given to Karnataka. Let them do whatever they want. It is the will of the people and we are there to protect the people of Karnataka. It is not like their budget and their tenure. Whatever promises we made have been fulfilled.”

Karnataka Chief Minister Siddaramaiah is currently presenting state budget. The budget session began on March 3 with the address by Governor Thaawarchand Gehlot to a joint session of the State legislature.

Despite tight financial conditions, the state government is expected to maintain full funding for its five flagship guarantee schemes, which were allocated Rs 52,000 crore in the previous budget.

At the same time, the upcoming budget is likely to emphasize balancing ambitious development initiatives with growing debt levels, projected to surpass Rs 1.25 lakh crore.

Infrastructure is expected to be a major focus, with allocations for proposed tunnel roads, a skydeck project, and the development of KWIN City and SWIFT City — parallel urban hubs aimed at easing Bengaluru’s congestion. Substantial funds are also likely for metro expansion, including the crucial Blue Line and other pending extensions, addressing the city’s infamous traffic woes.

Bengaluru, which grapples with chronic infrastructure challenges, is likely to feature prominently in the budget. Key urban reforms, including the Greater Bengaluru Governance Bill, are already under discussion. This bill aims to split BBMP into seven smaller corporations — a move opposed by the BJP and JDS, but strongly backed by the ruling Congress.

“There were no large job creation programs in the earlier two budgets. Anything done in this budget with a focus on investment will take two to three years to show results.  Unless this budget is a job oriented, investment oriented one, the entire five year rule of the Congress led state government will be remembered for a rule of freebies and not of growth development or job creation,” said Mohandas Pai, Chairman, Aarin Capital.

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The Karnataka Assembly has cleared the Bangalore Palace (Acquisition and Transfer) Bill, 2025, allowing the state government to relinquish portions of land needed for a road-widening project. This move follows a Supreme Court directive requiring the government to grant transferable development rights (TDR) worth Rs 3,400 crore to the former Mysuru royal family.

The official notice submitted by Chief Minister and Finance Minister Siddaramaiah reads, “I hereby give notice of my intention to move the following amendment to the Bangalore Palace (Utilization and Regulation of Land) Bill, 2025 (LA Bill No.5 of 2025), namely – Clause-3. In the said Bill, in clause 3, after sub-clause (5), the following shall be inserted, namely:- “(6) Notwithstanding anything in the Act, if any compensation has been paid in respect of any portion of Bangalore Palace land pursuant to any order or judgement of any court, the action of the State Government shall remain protected.”