Bengaluru (Karnataka) [India], March 7 (ANI): Karnataka Chief Minister Siddaramaiah presented the state budget for the financial year 2025-26 in the Legislative Assembly, allocating a sum of Rs. 51,034 crores for the implementation of various guarantee schemes in the current fiscal year.

CM Siddaramaiah emphasized that the government has managed these guarantees while maintaining fiscal discipline, adhering to the fiscal deficit norm of 3 per cent of GSDP and a debt-to-GSDP ratio of 25 per cent over the past two budgets.

The agriculture sector, which faced a negative growth rate of -4.9 per cent in the previous year, has rebounded with a 4 per cent growth in 2024-25, outpacing the national agricultural growth rate of 3.8 per cent.

This recovery has been attributed to government initiatives promoting Kharif sowing, favourable monsoon conditions, and improved reservoir levels. The government has increased its allocation to Rs. 51,339 crore for the farming sector from Rs 44,000 crore last year.

To ensure balanced infrastructure development across Karnataka, the government has launched the Chief Minister's Infrastructure Development Program (CMIDP) with an investment of Rs. 8,000 crores.

This initiative will focus on enhancing minor irrigation, road networks, and urban infrastructure across all legislative assembly constituencies.

The government reaffirmed its commitment to combating corruption and increasing transparency in administration. A new counselling-based transfer system will be introduced for Group-B and Group-C posts across key revenue-generating departments, including Commercial Tax, Excise, Stamps & Registration, Transport, and Mines & Geology.

To further enhance transparency and efficiency, technology-driven governance measures will be implemented. Over Rs. 1 lakh crore has already been directly transferred to beneficiaries' bank accounts, eliminating intermediaries.

On average, Rs. 233 crore has been disbursed per assembly constituency under the government's guarantee schemes, strengthening public trust in administration.

Karnataka continues to be a major contributor to the national economy, accounting for 8.4 per cent of India's GDP. The state's economy is projected to grow at 7.4 per cent in 2024-25, surpassing the national growth rate of 6.4 per cent.

To boost the industrial sector, Karnataka has introduced a new Industrial Policy (2025-30), targeting 12 per cent industrial growth and the creation of 20 lakh jobs by 2030.

The industrial sector has grown at 5.8 per cent in the current year, with Rs. 13,692 crores earmarked for financial assistance and subsidies to attract investments.The service sector remains the largest contributor to Karnataka's economy, accounting for 66 per cent of the state's Gross Value Added (GVA).

The sector has recorded an 8.9 per cent growth rate, exceeding the national average of 7.2 per cent. Policies in IT, biotechnology, and tourism are expected to bring in investments worth Rs. 1 lakh crore, with Rs. 13,500 crores committed towards subsidies and financial assistance.

Karnataka has advocated for a fairer revenue-sharing mechanism with the central government, proposing a 50 per cent share of the divisible pool for states. The state has also called for capping cesses and surcharges at 5 per cent of gross tax revenue, with excess funds being part of the divisible pool.

Despite these challenges, Karnataka has maintained strong revenue collection growth. State revenue is expected to grow by 10.3 per cent year-on-year in 2024-25, with non-tax revenue projected at Rs. 14,500 crore, reflecting a 10.5 per cent increase from the previous year.

To further enhance non-tax revenue, the government has formed a Resource Mobilization Committee, which has submitted its interim recommendations. (ANI)