Karnataka Budget 2025 Expectations: Bengaluru’s Infrastructure On The Wishlist – What’s to Come?

Chief Minister Siddaramaiah has written to the Centre, reiterating Karnataka's expectations for the promised Rs 5,300 crore for the Upper Bhadra Irrigation Project. He urged the Union government to meet its earlier commitments in the upcoming Union Budget for 2025-26, set to be presented on Feb 1.

Karnataka's expectations for the budget include special grants to improve Bengaluru's infrastructure, routing of funds for centrally sponsored schemes (CSS) through the state's consolidated fund, and additional support for social welfare measures. These expectations form a key part of the pre-Budget wish list submitted by Siddaramaiah to Union Finance Minister Nirmala Sitharaman.

At the top of Karnataka's expectations is the request for the release of special grants worth Rs 5,495 crore and state-specific grants of Rs 6,000 crore, as recommended by the 15th Finance Commission. Given Bengaluru's role as the state's economic engine and a hub for IT and startups, the Chief Minister emphasized that these special grants are essential to unlocking the city's full potential and attracting further investments. "Bengaluru requires significant improvements to its critical infrastructure. In light of this, I urge the Government of India to consider the Finance Commission's recommendation for state-specific grants to enhance the city's infrastructure facilities," said Siddaramaiah.

Another crucial expectation is the routing of central scheme funds through the state's consolidated fund, instead of direct transfers to administrative units. The Karnataka government has emphasized that any funds released for CSS schemes should be routed through the state consolidated fund to ensure legislative accountability and effective monitoring.

The current fund transfer model, known as the 'SNA SPARSH model,' bypasses the Consolidated Fund of the State (CFS), a move the state government believes undermines the legislative process. Siddaramaiah's presentation outlined that Union Budget volumes should specify the allocation for each state under various CSS schemes, helping states plan their matching state share realistically. He further stressed that states should have a more prominent role in formulating CSS schemes and should have the flexibility to modify them as needed.

The Karnataka government has also raised concerns over gaps in fund releases that lead to the state needing to bear the unreleased portion of the central government's share.

To address this, Siddaramaiah has requested that the mode of fund release be changed from reimbursement to advance release for certain schemes, like the Integrated Child Protection Scheme and Samagra Shiksha, which place an undue financial burden on the state.

Additionally, the state has high expectations for an increase in the Centre's share of support for ASHA and Anganwadi workers. Siddaramaiah has proposed a hike of Rs 5,000 per month for ASHA workers and Rs 2,000 for cooks and helpers at welfare centres. Currently, ASHA workers receive Rs 7,000 monthly, and Anganwadi workers receive Rs 10,000, with only a portion funded by the Centre.

Karnataka's expectations also include an extension of central assistance to at least 50 per cent of the beneficiaries under the National Social Assistance Programme. Siddaramaiah has argued that limiting assistance to a small portion of families undermines the goal of universal health coverage, and aligning financial assistance with the total number of families under NFSA would better equip the state to meet healthcare needs.

Moreover, the state is requesting an additional Rs 5 lakh for beneficiaries of housing schemes. The current grant of less than Rs 4 lakh is insufficient to build a one-bedroom house, as at least Rs 10 lakh is required.

With the Union Budget 2025 scheduled to be presented by Sitharaman on Saturday, February 1, Karnataka's expectations are focused on these key demands to secure the resources necessary for continued growth and development.