In his address to the Karnataka Legislature during the Budget Session that commenced on Monday, Governor Thawar Chand Gehlot underscored the state’s remarkable economic growth, fiscal prudence, and welfare progress.
He emphasized Karnataka’s “record-breaking” private investment influx, noting that it ranks second in the country for Foreign Direct Investment (FDI) and demonstrates substantial growth in Goods and Services Tax (GST). The Governor also highlighted the state’s advancements in agriculture, infrastructure, education, and technology, reinforcing Karnataka’s aspiration of becoming a $1 trillion economy.
During his speech, he remarked, “Many believed that the state would fall behind in development and that its financial system would suffer as a result of the ambitious welfare initiatives launched by the Government. However, we have proved these predictions incorrect. The state has achieved commendable success across all sectors. Our income is on the rise; private investments are flowing into the state at an unprecedented rate. The seriousness of inequality is diminishing due to the effective implementation of welfare programs.”
The Governor pointed out notable achievements in various sectors, citing an increase in income, a surge in private investments, and a decrease in inequality. Karnataka’s impressive FDI ranking and robust GST growth were also highlighted.
Through welfare initiatives, the “Shakti Yojana” has benefited over 376 crore citizens, with an allocation of ₹8,215 crore. Guarantee schemes worth ₹52,000 crore annually have been implemented, with nearly ₹70,000 crore directly transferred to beneficiaries’ bank accounts. Each year, over ₹90,000 crore is allocated to welfare programs benefiting 1.25 crore families, spanning sectors such as agriculture, housing, education, and social security.
In a bid to address regional disparities, ₹37,662 crore has been allocated based on the recommendations of the D.M. Nanjundappa committee, with ongoing studies for further improvements. Furthermore, ₹5,000 crore is earmarked each year for developing the Kalyan Karnataka region.
The government has also introduced measures to combat harassment in micro-loan recovery, including imposing strict penalties. An ordinance has been enacted that prescribes a minimum prison sentence of six months and a maximum of ten years, along with a potential fine of up to ₹5 lakh for offenders.
The Gruha Jyothi scheme has provided benefits to 1.62 crore consumers, with subsidies amounting to ₹17,290 crore. The Annabhagya Scheme ensures food security for over 4.48 crore people, with a new initiative offering 10 kg of grains per person.
Housing initiatives include the construction of 3.05 lakh houses at a cost of ₹4,761.15 crore and the distribution of 1.66 lakh title deeds to slum dwellers, along with reduced beneficiary contributions under the Pradhan Mantri Awas Yojana.
For the comprehensive development of Scheduled Castes and Scheduled Tribes, ₹27,674 crore has been allocated under the SCSP and ₹11,447 crore under the TSP for the 2024-25 fiscal year, totaling ₹39,121 crore.
Additionally, the Gruhalakshmi Scheme provides ₹2,000 monthly to female heads of families, benefiting 1.26 crore women and gender minorities. The Bhagyalakshmi-Sukanya Samriddhi Yojana supports girl children from families below the poverty line.
In terms of infrastructure, the Bengaluru Development Authority is constructing 30,000 housing units, and the Cauvery project now supplies drinking water to 50 lakh people. Indira Canteens continue to provide affordable meals, with plans for expansion.
In the business and infrastructure sectors, Karnataka secured ₹10.27 lakh crore in Memorandums of Understanding during the Global Investors Meet. The Governor acknowledged the state’s leadership in capital investment and exports, with a new Knowledge, Wellness, and Innovation (KWIN) City planned near Bengaluru. MSME growth is supported by ₹687 crore, and a textile park in Kalaburagi is anticipated to create one lakh jobs.
The aviation sector is seeing expansion, with new airport developments in Vijayapura, Mysuru, and Raichur. The Bengaluru Suburban Railway Project, valued at ₹15,767 crore, aims to alleviate traffic congestion in the city. Road and rail projects encompass the development of 2,491 km of highways, new railway tracks, and the Bengaluru Peripheral Ring Road project.
Urban development plans include a double-decker flyover integrating metro and road systems to ease traffic in Bengaluru. Ongoing water supply modernization projects in multiple cities have funds allocated for improving drinking water and drainage systems. The government continues its efforts to bolster the biotechnology sector and attract global investments through innovative policies.
The Governor concluded by asserting that the state’s fiscal management remains robust, with a 13% increase in revenue collection and strong GST contributions. The government aims to propel Karnataka into a trillion-dollar economy while ensuring sustainable growth across all sectors.
