Karnataka Budget: Siddaramaiah Defends Welfare Schemes, Calls Them 'Strategic Investments, Not Freebies'

Last Updated:March 07, 2025, 14:15 IST

Siddaramaiah emphasised that the Karnataka government’s schemes provide clear answers to many social and economic challenges raised by international forums.

Siddaramaiah presents Karnataka Budget. (Image: Karnataka CMO)

Carrying forward the Congress’s poll pitch and its promise of implementing the five guarantees that helped the party come to power in Karnataka in 2023, Chief Minister Siddaramaiah, in his 16th budget, came in full defence mode to justify the welfare schemes, insisting that they were “strategic investments" rather than “mere freebies."

The Karnataka Chief Minister, who broke the norm of standing while delivering the budget speech due to a leg injury, emphasised that the guarantees were based on economic and social principles.

Increasing the allocations for the various schemes, the CM took a minute to quote Muzaffar Assadi, a renowned scholar and political commentator who recently passed away. Siddaramaiah said, “Behind the guarantee schemes lie the suffering of the poor, the violence of poverty, the struggles of women, and the vision of an unequal India."

He also announced that this year’s budget would focus on six key developmental dimensions: Welfare Programmes Budget, Agriculture and Rural Development Budget, Development-Oriented Budget, Prioritising Urban Development, Investment and Job Creation, and Governance Reforms.

Siddaramaiah emphasised that the Karnataka government’s schemes provide clear answers to many social and economic challenges raised by international forums. He said that welfare programmes have been launched to increase people’s purchasing power.

Among the five guarantees, the Anna Bhagya scheme was one of the first welfare programmes launched during Siddaramaiah’s first term as chief minister (2013-18) which continued as part of the welfare scheme package in his second term as CM in 2023. He announced that financial assistance given in lieu of the additional 5 kg of rice under Anna Bhagya would now be replaced with actual rice. “This will provide additional rice to 4.21 crore beneficiaries," he stated.

Under the Yuva Nidhi scheme, Siddaramaiah said the government is providing unemployment allowance to unemployed graduates and diploma holders. “About 2.58 lakh youths have already registered under this scheme, and unemployment allowance of Rs 286 crore has been transferred through Direct Benefit Transfer (DBT)," he stated.

The Gruha Lakshmi scheme, which provides Rs 2,000 to the woman head of each family, has faced controversy over its large allocation and delayed disbursement. Addressing this, Siddaramaiah said the scheme had been implemented in 2023-24 and 2024-25, and “financial assistance was successfully provided to 1.22 crore women heads of households at a cost of Rs 28,608 crore."

The first guarantee scheme implemented by the Congress government was Shakti, which offers free bus travel for women. Siddaramaiah announced that 226.53 crore women passengers have availed the scheme’s benefits so far. The government has spent Rs 5,015 crore in 2024-25, and Rs 5,300 crore has been earmarked for 2025-26. “This scheme has instilled strength for self-reliance and financial improvement of women," he added.

Under the Gruha Jyoti scheme, which provides up to 200 units of free electricity, Siddaramaiah highlighted its success, stating that 1.62 crore consumers have registered for the scheme. “During 2024-25, Rs 9,657 crore was allocated, and in the current year, Rs 10,100 crore will be provided," he announced.

Advancing the state through women’s empowerment is a key approach, alongside significant efforts to address environmental crises through a “green economy."

He highlighted that Karnataka is at the forefront of renewable energy, promoting environmentally friendly industries, and actively recycling and purifying used water—initiatives that have received global recognition. He further stated that education and healthcare remain top priorities.

For the financial year 2025-26, the total estimated expenditure stands at Rs 4,09,549 crore, comprising Rs 3,11,739 crore in revenue expenditure, Rs 71,336 crore in capital expenditure, and Rs 26,474 crore allocated for loan repayment.

Political analysts are quite alarmed by the reduced emphasis on education, health, and infrastructure with a mere 10 per cent and 5 per cent allocation for education and health respectively, notes political analyst Sandeep Shastri.

A major concern, Shastri points out, is the drop in revenue generation between the budget estimates and revised estimates.

“It means the government has not been effective in revenue generation and 27 per cent of where your money comes from is through borrowings today. If you look at where the rupee comes from, 27 per cent is coming from borrowing, which is going to create a trend in the coming years because you have to pay it back. Another 18 per cent of your rupee today is being spent on debt servicing. These are two very alarming factors," said the analyst.

Simply put in layman’s terms, it means that 18 paisa for every one rupee is being spent to pay back loans taken earlier and another Rs 27 out of Rs 100 has been taken as loans.

“This means more than one-fourth of your resources for expenditure is coming through loan borrowing, which can create serious inflationary trends," Shastri pointed out.

News politics Karnataka Budget: Siddaramaiah Defends Welfare Schemes, Calls Them 'Strategic Investments, Not Freebies'