Bengaluru, Mar 7 (PTI) In his record 16th budget with an outlay of over Rs 4 lakh crore, Karnataka Chief Minister Siddaramaiah on Friday strongly defended his government's five guarantee schemes, laid stress on 'Brand Bengaluru' and targeted the union government for the state's fiscal challenges.

He sought to emphasise the budget for the year 2025-26 was "development-oriented." Opposition BJP called it a "Halal budget," accusing the ruling Congress of minority appeasement. The CM shot back, saying the remarks showed the saffron party's "rotten mindset." The veteran leader presented the budget remaining seated due to knee pain for about three-and-a-half hours in the state Assembly. The 76 year-old Siddaramaiah has been suffering from the health issue for some time now.

He noted the budget will focus on implementing programmes across six key developmental dimensions: Welfare Programmes, Agriculture and Rural Development, Development-Oriented, Prioritizing Urban Development, Investment and Job Creation, and Governance Reforms.

"Many of the welfare programmes we offer, including the five guarantees, are not merely freebies; I can confidently say these are strategic investments made on economic and social principles," he said.

"In addition to these initiatives, we will prioritise new strategies to eliminate regional disparities, strengthen education and health sectors, ensure an efficient transport system, and maintenance of law and order. This budget emphasises on empowering the helpless through welfare departments," he said.

The five guarantees were the key pre-poll promises of the Congress government. They are "Gruha Jyothi", offering 200 units electricity free to every household, "Gruha Lakshmi" scheme promising Rs 2,000 to every woman head of a family and "Anna Bhagya" offering 10 kg rice to every member of the BPL family a month. The "Yuva Nidhi" promises Rs 3,000 dole to unemployed graduates and Rs 1,500 to unemployed diploma holders for two years (in the 18-25 age-group), while the 'Shakti' scheme permits free travel for Karnataka women within the state in government non-luxury buses.

The outlay of budget is estimated to be Rs 4,09,549 crore. It includes revenue expenditure of Rs 3,11,739 crore, capital expenditure of Rs 71,336 crore and loan repayment of Rs 26,474 crore.

Like last year's budget, this budget is also a revenue deficit one. The deficit has been pegged at Rs 19,262 crore, which is down from Rs 27,354 crore in 2024-25.

The total revenue receipts is estimated to be Rs 2,92,477 crore, of which Rs 2,08,100 is the State's own tax revenue, Rs 16,500 crore non-tax revenues. Government of India receipts is Rs 67,877 crore.

Gross borrowings was Rs 1,16,000 crore, non-debt capital receipts Rs 170 crore is also estimated for 2025-26. Total receipts estimated in the budget for 2025-26 is Rs 4,08,647 crore.

Siddaramaiah said the government has the responsibility to ensure available resources are accessible to everyone, by balancing economic development with people's welfare, and the administration is shaping Karnataka's development model through the concept of "Universal Basic Income".

The CM proposed Rs 7,000 crore for improving Bengaluru's infrastructure. This was an increase of Rs 4,000 crore from what is allotted annually.

In order to strengthen the 'Brand Bengaluru' Plan, Rs 1,800 crore has been set aside for 21 schemes during the financial year 2024-25, he said.

"Our government gives priority to basic infrastructure in Bengaluru city which makes a major contribution to the state's economy. The yearly grant of Rs 3,000 crore being provided will be enhanced to Rs 7,000 crore in the current year. A new Special Purpose Vehicle will be established to utilise these grants and implement major developmental works on priority," he said.

Karnataka is noted for its prudent fiscal policy, debt management and adherence to fiscal discipline. It is also the first state in the country to incorporate off-budget borrowings into total liabilities.

However, the union government's failure to fully compensate for GST revenue loss, non-devolution of cesses and surcharges and lower tax devolution from the Fifteenth Finance Commission compounded the state's fiscal challenges, he said.

"As a result, Karnataka has been facing revenue challenges in its pursuit of long-term growth with social justice," he added.

"While economically advanced states are committed to supporting poorer states, it should not be at the expense of their own residents or economic efficiency." The CM said he has allocated Rs 51,034 crore for guarantee schemes in the current financial year, and it should be noted that government managed the guarantees within the prudent fiscal deficit norm of 3 per cent of GSDP (Gross State Domestic Product) and debt-GSDP ratio of 25 per cent for the last two budgets, he said.

According to the Budget, for the financial year 2025-26, revenue deficit is estimated to be Rs 19,262 crore, which is 0.63 per cent of GSDP.

Fiscal deficit is estimated to be Rs 90,428 crore, which is 2.95 per cent of GSDP. Total liabilities at the end of 2025-26 is estimated to be Rs 7,64,655 crore, which is 24.91 per cent of GSDP.

"By keeping fiscal deficit and total outstanding liabilities within the limits mandated under the Karnataka Fiscal Responsibility Act, we have maintained fiscal discipline in the financial year 2025-26," the CM said.

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Five guarantee schemes defended as strategic investments; budget maintains fiscal discipline and outlines infrastructure and social priorities. The 2025-26 budget defends the government's five guarantee schemes as strategic investments in welfare, outlines projected receipts, expenditures, borrowings and liabilities, and asserts maintenance of fiscal discipline within statutory limits by targeting fiscal-deficit and debt-GSDP ratios while increasing allocations for urban infrastructure via a new Special Purpose Vehicle and noting intergovernmental transfer shortfalls that affect state revenues.