Chief Minister Siddaramaiah will present Karnataka's 17th budget today, amidst revenue pressures, rising welfare commitments, and disagreements over debt estimates.
The overall outlay is expected to reach ₹4.20 lakh crore, with a projected revenue deficit.
The state is unlikely to meet the revenue targets set for 2025-26 due to GST rate changes and other factors, resulting in a revenue shortfall of around ₹18,000 crore.
The administration has taken steps to increase revenue from mining, but faces growing expenditure commitments, including flagship guarantee schemes and filling 56,432 vacant posts.
The government is projected to allocate ₹3.45 lakh crore towards routine expenditure, with salaries and pensions alone requiring an outlay of around ₹1.36 lakh crore.
The state's fiscal situation is shaped by revenue deficit trends, with the estimated revenue deficit standing at ₹19,262 crore for 2025-26 and expected to widen due to GST-related revenue losses.
The state government has challenged the RBI's estimate of outstanding liabilities, citing a difference of ₹49,445 crore, and has asked the Accountant-General to reclassify entries.
