Union Budget 2025: Karnataka expects fairness, seeks more packages, aid

Congress-ruled Karnataka expects fair treatment from the Central government in the upcoming Union Budget to be presented on February 1. And the state has plenty of grievances – and demands.

Karnataka’s expectations are focused on adequate financial support, development projects, and policies that can help promote the state's holistic growth.

Key areas

Some key areas where Karnataka expects assistance include GST compensation and fund devolution, a fair share of tax revenues, infrastructure development, agriculture and rural development, IT and start-ups, education skill development, healthcare, urban development and housing, environmental initiatives, employment, and social welfare.

Law and Parliamentary Affairs minister HK Patil told The Federal: “Karnataka will expect fairness and justice in the budget. The budget should reflect the aspirations of the federal structure of the country and allocate funds judiciously without discrimination among the states.”

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Siddaramaiah’s grouse

Chief Minister Siddaramaiah has time and again sought a fair and justified share for Karnataka.

Recently, he sought to know why Karnataka, which contributes Rs 4.50 lakh crore to the national exchequer, get only Rs.45,000 crore in grants? “This injustice mocks every hardworking Kannadiga despite making up only 5 per cent of India's population, contributing 8.4 per cent to the nation's GDP and ranking second in the GST collection.”

He accused the Central government of denying Karnataka its fair of revenue.

Upper Bhadra project

Siddaramaiah has reiterated his demand of Rs.5,300 crore for the Upper Bhadra Project (UBP). He said that during the 2023-24 budget, finance minister Nirmala Sitharaman announced Rs. 5,300 crore as Central assistance for UBP.

But he complained that the inclusion process for the UBP in the national project scheme has been delayed and the progress of the project is hindered due to non-release of Central assistance.

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Bengaluru infrastructure

Deputy Chief Minister DK Shivakumar wants Central funds to build tunnel roads, double-decker flyovers and elevated corridors worth Rs.90,000 crore for Bengaluru.

He has urged MPs from Karnataka to ensure that the necessary allocation for the infrastructure projects are provided in coming Union Budget.

“Bengaluru has evolved into a global hub for technology and investment, creating employment opportunities and driving economic growth. The city’s population is almost 1.50 crore… significant infrastructure upgrading is important,” he said.

Irrigation projects

During a pre-budget online meeting with Union agriculture minister Shivaraj Singh Chouhan, Karnataka’s agriculture minister N Chaluvarayaswamy sought funds for irrigation schemes and better farm-to market infrastructure and subsidies to farmers.

He asked for higher allocation under schemes such as PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) and other farm welfare programmes. The minister told the Federal that he was confident of the Centre’s help vis-à-vis Karnataka’s agriculture infrastructure.

Revenue minister Krishna Byre Gowda and panchayat raj and rural development minister Priyank Kharge urged Chouhan to allocate more funds to Karnataka.

MSP for ragi, jowar

Chaluvarayaswamy wants all millets included in the purview of the minimum support price (MSP).

Presently ragi, jowar and bajra are being covered under MSP. He sought financial assistance to set up a Pesticide Formulation Technology Institute in the state.

Highlighting the sharp reduction in state’s loan share from NABARD, which dropped from Rs.9,162 crore to Rs. 2,340 crore, Chaluvarayaswamy appealed to the Union minister a special grant to develop 92 watershed projects.

Energy sector

Forest minister Eshwar Khandre sought financial support for sustainable development projects, forest conservation and urban greening programmes.