Chief Minister Siddaramaiah, who also holds the portfolio of Finance Minister, unveiled the Karnataka Budget 2024 on February 16. This budget serves as a glimpse into the agenda of the ruling Congress party in anticipation of the forthcoming Lok Sabha elections, slated for April-May this year.
As part of an initiative to bridge the gap in rural areas for nutritious, hygienic, and cost-effective cooked food, the government plans to launch 50 women-run cafes named Cafe Sanjeevini across the State, allocating Rs 7.50 crore for the endeavor.
Despite the assurance from the Union Government regarding the growth of 14% with the introduction of Goods and Services Tax (GST), the actual revenue fell short. Over the span of 2017 to 2023-24, the GST tax collection was projected to reach Rs. 4,92,296 crore, but only Rs 3,26,764 crore was collected. Consequently, the state incurred a loss of Rs 59,274 crore due to what was deemed an unscientific implementation of GST over the past seven years.
The government plans to establish Kisan Malls in select districts and initiate the development of a hi-tech commercial flower market in Bengaluru and a Spice Park in Chikkamagalur district under the PPP Model. Additionally, Foodparks are slated to be established in three districts.
The revision of the tourism policy for 2024-2029 aims to tap into the tourism potential of the State to attract more tourists and investors. An allocation of Rs 100 crore is designated for the development of tourism in Anjanadri Hills and the surrounding areas of Koppal district, which hold both mythological and historical significance.
Karnataka Chief Minister Siddaramaiah announced a total budget size of Rs 3.71 lakh crore, with an estimated state economy growth rate of 6.6% in the upcoming financial year. Notably, the services and industrial sectors emerged as significant contributors, with respective growth rates of 8.7% and 7.5% in 2023-24.
Through the implementation of five guarantees – Shakti, Gruhajyoti, Gruhalakshmi, Yuvanidhi, and Annabhagya – the government aims to inject Rs 52,000 crore into the hands of millions of people during 2024-25, with an average transfer of Rs 50,000 to Rs 55,000 per family annually through these guarantee schemes.
Despite economic challenges such as a global economic slowdown and high interest rates in developed nations, Karnataka witnessed an inflow of Foreign Direct Investment amounting to 2.8 billion dollars as of September 2023. Furthermore, amid disruptions and opposition protests, the Chief Minister announced the establishment of a 73-km long Bengaluru Business Corridor with an allocation of Rs 27,000 crore, formerly known as the Peripheral Ring Road.