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Karnataka faces fiscal crisis as revenue shortfall hits Rs 9,000–13,000 crore

Bengaluru, Jan 16 (UNI) Karnataka is staring at a potential fiscal crisis as over-optimistic revenue projections and administrative shortcomings threaten the state government’s budget targets. With only Rs 1.38 lakh crore mobilised against a target of Rs 2.03 lakh crore for the current financial year, officials privately estimate a shortfall of Rs 9,000–13,000 crore by year-end, exposing weaknesses in fiscal planning and execution.
The budget for 2025–26 was based on the assumption of steady growth in tax revenues, expected to fund welfare schemes, infrastructure projects, and routine administrative expenditure. However, the gap between expectations and actual collections has highlighted fragilities in the government’s revenue strategy, with several key departments failing to meet their targets.
Revenue from property registration and stamp duty, traditionally a stable source, has lagged significantly. Technical glitches in the Kaveri software system, delays in the rollout of Kaveri 2.0 and the e-Swathu platform, and persistent server failures have slowed property registrations, leaving officials pessimistic about reaching the annual target of Rs 24,000 crore.
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