Karnataka Budget 2025: Here Are The Key Announcements And Major Highlights

Karnataka Chief Minister Siddaramaiah presented the state’s Budget for 2025-26 in the Karnataka Assembly today, March 7. This marks his 16th Budget, with a strong focus on industrial development, welfare schemes, and urban infrastructure. The Budget is estimated to be around Rs 4 lakh crore, surpassing last year’s Rs 3.71 lakh crore.

Key Announcements

Reservation in Government Contracts & Procurement
- Under the Karnataka Transparency in Public Procurement Act, reservation for Scheduled Caste, Scheduled Tribe, Category-I, Category-2A, and Category-2B contractors in government works will be increased to Rs 2 crore.
- Similar reservation of up to Rs 1 crore will be implemented for procurement of goods and services from suppliers belonging to these categories.
Education Initiatives
- AI-based ‘Kalika Deepa’ Programme: To be extended to 2,000 schools, enhancing Kannada and English learning and early mathematical skills.
- ‘Jnana Setu’ Programme: Collaboration with Khan Academy to revolutionize science and maths teaching, benefiting 20 lakh students and 15,000 teachers in 5,000 government schools.
- I-Code Labs: Set up in 63 hub schools in partnership with Agastya Foundation to introduce coding in government schools, benefiting 756 spoke schools.
Agriculture & Horticulture
- Knowledge Cell in IIST: A new Knowledge Cell will use satellite and modern technology to provide real-time data to farmers on crop health, production, and market trends.
- Seed Bank: To be established for conserving 20 GI-tagged and indigenous crops at risk of extinction.
Infrastructure & Urban Development
- Metro network to be extended to Kempegowda International Airport.
- An 18.5 km North-South tunnel from Hebbal Esteem Mall to Silk Board Junction at an estimated cost of Rs 15,000 crore to ease Bengaluru’s traffic congestion.
- Rs 1,800 crore allocated for 21 projects under Brand Bengaluru.
- Rs 3,000 crore for weather-related challenges.
- Rs 555 crore allocated for Phase 5 of the Cauvery Water Supply Project.
Social Welfare Schemes
- Revised Anna Bhagya Scheme: The financial aid given instead of 5 kg additional rice will be replaced with direct rice distribution.
- Financial assistance of Rs 50,000 for minority families for low-cost weddings.
- Honorarium increase for Jain priests, Chief Granthis (Sikhs), and Pesh-Imams to Rs 6,000 per month.
Higher Education & Cultural Initiatives
- Bangalore City University to be renamed Dr. Manmohan Singh Bengaluru City University.
- Buddhist Study Academy to be established in Bengaluru, with digitalization of the 100-year-old Mahabodhi Study Centre library at a cost of Rs 1 crore.
- 15 women’s colleges to be built on vacant Waqf land in 2024-25, with an additional 16 planned for 2025-26.
- State-owned OTT platform to be launched to promote Kannada-language programs.
- 250 Moulana Azad Model English Medium Schools to be established in phases, with an allocation of Rs 500 crore, including Rs 100 crore for this year.
Economic Growth & Silk Industry Boost
- Karnataka’s state GDP has grown by 7.4%, outpacing the national GDP growth of 6.2%.
- Agriculture sector growth at 4%.
- A new silkworm market to be set up in Mysuru in collaboration with NABARD.
- Rs 2,000 crore allocated for urban development in Mahanagara Palikes.