The budget estimates the Centre’s contribution to the state’s revenues at Rs 79,050 crore in the next fiscal, up from Rs 62,933 crore in the current year, banking on higher tax devolution. Of this, about Rs 6,796 crore is expected to accrue following recommendations of the 16th Finance Commission. The State’s share in central taxes and duties has gone up under the FC award from 3.647 % to 4.131%.
Total revenue receipts are projected at Rs 3,15,050 crore, including commercial tax revenues of about Rs 2,20,000 crore.
The government has proposed a capital expenditure of Rs 74,682 crore against a revenue expenditure of Rs 3,38,007 crore, while gross borrowings are estimated at Rs 1,32,000 crore.
Under pressure from the fiscal burden of the Congress government’s five guarantee schemes, Siddaramaiah refrained from announcing major new programmes. Instead, the budget focuses on expanding healthcare facilities and introducing reforms in revenue administration.
Several targeted welfare initiatives for Scheduled Castes, Scheduled Tribes, Other Backward Classes and minorities have also been announced. Siddaramaiah has long positioned himself as a leading proponent of the AHINDA social coalition—comprising minorities, backward classes and Dalits—a key plank of his political base.
The Opposition BJP criticised the government for what it termed minority appeasement, particularly objecting to specific announcements benefiting minority communities. Its MLAs staged a protest outside the Vidhana Soudha, accusing the chief minister of pushing the state towards fiscal distress and saddling citizens with mounting debt.Siddaramaiah, who assumed office in May 2023 and presented his 17 budget, said his government had spent ?1,21,598 crore on the five guarantee schemes till the end of February 2026.
The chief minister also proposed deregulation measures in the alcoholic beverages sector to promote tourism and boost revenues. The budget targets ?45,000 crore in liquor tax collections. In addition, the government expects ?29,000 crore from property taxes, amid indications that the guidance value (circle rate) of properties will be revised in April.
Union minister and JD(S) leader H D Kumaraswamy, displeased by the Congress budget, questioned the rising borrowings, asking why higher debt levels were not translating into a commensurate increase in capital expenditure. He also alleged that a portion of the borrowing was being used to support an expanded political structure and advance the interests of Congress leaders.
