Bengaluru, Mar 7 (UNI) Presenting Karnataka Budget 2025-26, Chief Minister Siddaramaiah on Friday said that the state's total borrowings for 2025-26 stand at ₹1.16 lakh crore, an increase of ₹11,000 crore from the previous fiscal year.
Siddaramaiah stated that Karnataka’s fiscal deficit for the financial year 2025-26 has been pegged at ₹90,428 crore, accounting for 2.95 per cent of the Gross State Domestic Product (GSDP).
The revenue deficit for FY26 is estimated at ₹19,262 crore, which is 0.63 per cent of GSDP. Meanwhile, the state’s total liabilities at the end of the financial year are projected to reach ₹7,64,655 crore, constituting 24.91 per cent of GSDP.
The Karnataka Budget for 2025-26 estimates total receipts at ₹4,08,647 crore, with total revenue receipts expected to be ₹2,92,477 crore. This includes the state’s own tax revenue of ₹2,08,100 crore, non-tax revenue of ₹16,500 crore, and receipts from the Government of India amounting to ₹67,877 crore.
Additionally, the budget estimates gross borrowings of ₹1,16,000 crore and non-debt capital receipts of ₹170 crore for the financial year.
Despite the rising borrowings and liabilities, infrastructure development in the state has been minimal, raising concerns over the utilisation of funds. Experts point out that while the fiscal deficit remains within acceptable limits, the lack of visible capital expenditure could strain long-term economic growth.
Critics also argue that without substantial investment in infrastructure, the increasing debt burden may not translate into tangible benefits for the state’s economy.
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