K’taka: Outlay crosses Rs 4 lakh crore; Siddaramaiah presents Rs 19,262cr deficit budget
Bengaluru: Karnataka Chief Minister Siddaramaiah, who also holds finance portfolio, presented his record 16th budget on Friday, with the size of the outlay touching Rs 4.08 lakh crore, up from Rs 3.71 lakh crore in the Financial Year 2024-25.
“The total Revenue Receipts of Rs 2,92,477 crores is estimated for 2025-26. It includes own tax revenue of Rs 2,08,100 crore, non-tax revenue of Rs 16,500 crore and Govt. of India receipts of Rs 67,877 crore. In addition to these revenue receipts, gross borrowings of Rs 1,16,000 crore, non-debt capital receipts of Rs 170 crore is estimated for 2025-26,” CM Siddaramaiah stated.
“Total receipts estimated in budget for 2025-26 is Rs 4,08,647 crore,” CM Siddaramaiah stated.
Total Expenditure for 2025-26 is estimated to be Rs 4,09,549 crore.
It includes revenue expenditure of Rs 3,11,739 crore, capital expenditure of Rs 71,336 crore and loan repayment of Rs 26,474 crore, he said.
For the financial year 2025-26, revenue deficit is estimated to be Rs 19,262 crore, which is 0.63 per cent of GSDP. Fiscal Deficit is estimated to be Rs 90,428 crore, which is 2.95 per cent of GSDP.
“Total liabilities at the end of 2025-26 is estimated to be Rs 7,64,655 crore, which is 24.91 per cent of GSDP. By keeping fiscal deficit and total outstanding liabilities within the limits mandated under Karnataka Fiscal Responsibility Act, we have maintained fiscal discipline in the financial year 2025-26,” CM Siddaramaiah stated.
“A total receipt of Rs 3,58,657 crore has been estimated in 2024-25 revised estimates. Revenue Receipts is estimated at Rs 2,57,801 crore. The revenue receipts include State own tax revenue of Rs 1,80,368 crore, non-tax revenue of Rs 14,500 crore and receipts from government of India of Rs 62,933 crore from the Centre,” CM stated.
In 2024-25 revised estimates, total expenditure is estimated to be Rs 3,65,865 crore. It includes revenue expenditure of Rs. 2,83,928 crore and Rs. 81,937 crore for capital expenditure including loan repayment, he stated.
Karnataka is the 2nd highest GST revenue collecting state in the country in 2024-25. A total revenue of Rs. 1,05,000 crore is estimated from Commercial tax in revised estimates for 2024-25, he stated.
For the financial year 2025-26, revenue target of Rs 1,20,000 crore is set for Commercial Tax Department. A total revenue of Rs. 36,500 crore is estimated from State Excise in revised estimates for 2024-25. The revenue collection target for 2025-26 is Rs.40,000 crore, he stated.
“The revenue target for Stamps and Registration Department for the year 2025-26 is Rs.28,000 crore. A total revenue of Rs 12,500 crore is estimated from Motor vehicle tax in revised estimates for 2024-25. The revenue collection target for Transport Department for the year 2025-26 is Rs 15,000 crore.
“Revenue collection by Mines and Geology Department is estimated to be Rs 7,250 crore as per the revised estimates for 2024-25,” CM Siddaramaiah stated.
Presently, royalty is being levied and collected as per the provisions of Mines and Minerals Development and Regulation (MMDR) Act. However, in view of the Hon’ble Supreme Court Judgement, State Government has passed a legislation to levy tax on major minerals, in addition to the royalty. “We estimate an additional revenue of Rs 3,000 crores as receipts from tax on mines for 2025-26. The royalty collection for the year 2025-26 is estimated at Rs 9,000 crores,” he stated.
CM Siddaramaiah maintained that it is proposed to make suitable amendment to the Professional Tax Act, to increase the Professional Tax payable by salary and wages earners from Rs 200 to Rs 300 for the month of February to align with the maximum limit permissible of Rs 2500 per annum.