In his recent address to the Karnataka Legislature during the Budget Session, Governor Thawar Chand Gehlot praised the state’s notable economic advancements, fiscal responsibility, and achievements in welfare programs.
He pointed out that Karnataka has experienced record-high private investment inflows, ranking second in the country for Foreign Direct Investment (FDI) and showcasing impressive growth in Goods and Services Tax (GST) revenue. The Governor also highlighted the progress made in agriculture, infrastructure, education, and technology, reaffirming the state’s ambition to evolve into a $1 trillion economy.
During his speech, he remarked, “Many believed the state would fall behind in development and that our financial system would deteriorate due to the ambitious welfare initiatives introduced by the government. However, we have disproved this notion. The state has achieved significant progress across various sectors, with our income increasing and private investments reaching new heights. Moreover, the extent of economic inequality is diminishing thanks to the effective execution of welfare programs.”
The Governor recognized that Karnataka is making considerable strides in multiple areas, evidenced by rising incomes, increased private investments, and a reduction in inequality. He reiterated that the state ranks second nationally in FDI, alongside a strong GST growth rate.
Under the welfare initiatives, the “Shakti Yojana” has reached over 376 crore citizens, with an allocation of ₹8,215 crore. The government has also rolled out guarantee schemes valued at ₹52,000 crore annually, enabling direct cash transfers totaling ₹70,000 crore to beneficiaries’ bank accounts. Annually, over ₹90,000 crore is allocated to welfare programs, aiding 1.25 crore families in sectors such as agriculture, housing, education, and social security.
To tackle regional disparities, ₹37,662 crore has been allocated based on the D.M. Nanjundappa committee report, with further evaluations ongoing. Additionally, ₹5,000 crore is earmarked each year for the development of the Kalyan Karnataka region.
New measures have been introduced to prevent harassment in micro-loan recovery, including stringent penalties. An ordinance has been enacted to establish a minimum sentence of six months and a maximum of ten years, alongside fines of up to ₹5 lakh for offenders.
The Gruha Jyothi scheme has delivered subsidies of ₹17,290 crore to 1.62 crore consumers, while the Annabhagya Scheme aims to ensure food security for over 4.48 crore individuals by providing an additional 10 kg of grains per person.
In housing, 3.05 lakh homes have been constructed at a cost of ₹4,761.15 crore, alongside the issuance of 1.66 lakh title deeds to slum residents and a reduction in beneficiary contributions under the Pradhan Mantri Awas Yojana.
For the holistic development of Scheduled Castes and Scheduled Tribes in 2024-25, ₹27,674 crore from the Scheduled Caste Sub Plan (SCSP) and ₹11,447 crore from the Tribal Sub Plan (TSP) will bring the total allocation to ₹39,121 crore.
Furthermore, under the Gruhalakshmi Scheme, ₹2,000 is provided monthly to female family heads, benefiting 1.26 crore women and gender minorities. The Bhagyalakshmi-Sukanya Samriddhi Yojana supports girl children from below-poverty-line families.
Investment in urban development includes the construction of 30,000 housing units by the Bengaluru Development Authority, while the Cauvery project now supplies drinking water to 5 million residents. The Indira Canteens continue to expand their provision of affordable food.
In terms of business and infrastructure, Karnataka has secured ₹10.27 lakh crore in Memorandums of Understanding (MoUs) during the Global Investors Meet. The state is recognized for its leadership in capital investments and exports, with plans for a new Knowledge, Wellness, and Innovation (KWIN) City near Bengaluru. Support for MSME growth has been allocated ₹687 crore, while a textile park in Kalaburagi is projected to generate one lakh jobs.
The aviation sector is witnessing growth with new airport constructions in Vijayapura, Mysuru, and Raichur. The Bengaluru Suburban Railway Project, valued at ₹15,767 crore, aims to alleviate city traffic congestion. Road and rail initiatives are in progress, including the development of 2,491 km of highways, new railway lines, and the Bengaluru Peripheral Ring Road project.
Urban development efforts include a double-decker flyover integrating metro and road transport to ease Bengaluru’s traffic. Water supply modernization projects are ongoing in several cities, with financial investments designated for improved drinking water and drainage systems. The government also aims to bolster the biotechnology sector and attract international investments through new policy initiatives.
The Governor concluded by affirming the state’s robust fiscal management, showcasing a 13% increase in revenue generation and solid GST contributions. The government aspires to transform Karnataka into a trillion-dollar economy, fostering sustainable growth across all sectors.
