This budget is a live document echoing the dreams and confidence of farmers, marginalised sections, workers, women, vulnerable groups, minorities, students, youth, and those engaged in trade and industry.” This is what Chief Minister Siddaramaiah – who also holds the finance portfolio – declared as he presented his record 17th budget as the “primary trustee of the tax money of the people of the progressive state.”
Amid political uncertainty draining the administration and severe financial constraints, the CM’s budget tries to balance his trademark welfarism with infrastructure development. Despite covering AI, IT exports to the GCC, bans on social media for under-16s, initiatives to support agriculture, and welfare, the budget notably omits concrete measures for the lakhs of rural poor who depend on the government’s employment guarantee scheme.
Apart from continuing his political tirade against the Union government over replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with Viksit Bharat—Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G) Act, Siddaramaiah did not clarify what is in store for the nearly 71 lakh households that have benefited from this scheme in the current year. The future of nearly 7,000 people who work in various positions at the ground level to ensure implementation of the employment guarantee scheme is also in limbo.
Normally, around this time of the year, preparations, including verification of job cards for the execution of the scheme, starts. The demand for work peaks in April and May, when there is little agricultural work in villages. For now, uncertainty reigns, as many poor people in places like Gadag in North Karnataka are migrating to Goa, Kerala and other states. Migration is high in most parts of North Karnataka, with Kalaburagi being among the top 50 districts in India.
In his budget speech, the CM urged the Union government to restore the earlier framework. He even expressed his government’s intent to pursue all appropriate recourse, including legal measures. However, hours later, at the post-budget press conference, he admitted that they have yet to decide on the future course of action.
Siddaramaiah, his government, and the party may have a justification to take on the Union Government. Politically, they could be looking at channelising the anger among the rural poor against the Centre.
Siddaramaiah and other Congress leaders in the state may be sending a message to their party brass that they are taking the lead in the fight to restore MGNREGA, which was a flagship programme of the UPA government. Consistent demonstration of loyalty to the party leadership is useful in times of political uncertainty. And, perhaps, the CM is financially constrained to allocate Rs 2,500 to Rs 3,000 crore required for the implementation of the VB-G RAM G Act.
They have every right to take a stand and pursue a political battle. However, in the budget, the government should have at least clarified what is in store for lakhs of people staring at an uncertain future. Renaming Gram Panchayats as “Mahatma Gandhi Gram Panchayats” makes little tangible difference to poor households in need of employment.
Beyond the rural employment scheme, the creation of employment opportunities in government and private sectors is crucial to improve the quality of life and ensure equitable development of all regions.
For 2025-26, Karnataka’s per capita income is estimated at Rs 4,33,326 at current prices, registering a growth of 12.2 per cent over Rs 3,86,156 in 2024-25. State’s per capita income is 97 per cent higher than the all-India average of Rs 2,19,575. As per the latest Karnataka Economic Survey, in 2024-25, Karnataka ranked number three in the country, slightly below Tamil Nadu’s Rs 3,87,623 and Delhi with Rs 4,93,024.
However, in many districts in North Karnataka, the per capita income is as low as Rs 1,44,449 in Kalaburagi at the bottom of the list, followed by Yadgir at Rs 1,64,388, and Raichur at Rs 1,78,888. For 2023-24, it was Rs 1,43,610 for Kalaburagi and Rs 1,46,364 for Yadgir. There is hardly any noticeable increase compared to those at the top of the table in the same period. Bengaluru Urban went from Rs 7,38,910 to Rs 8,55,960, followed by Dakshina Kannada from Rs 5,56,059 to Rs 6,26,279, and Udupi from Rs 5,33,469 to Rs 6,00,683.
The Economic Survey highlights the fact that the Kalaburagi revenue region recorded the lowest per capita income, followed by the Belagavi region. It largely attributes this to the limited presence of industrial and services activities, emphasising the need for private investment.
In the budget, the CM demonstrated his intent to promote industrial development in backward regions by announcing an additional incentive of five percent for most backward regions and three percent for backward regions. It is a welcome move, but that by itself would not be enough unless the government creates suitable conditions for investments.
Siddaramaiah announced that a separate Planning, Policy, and Data Analysis Wing will be established to help formulate policies to increase the share of Kalyan Karnataka towards GSDP. The CM also announced the in-principle acceptance of Prof M Govinda Rao committee report on redressing regional imbalance and allocated Rs 4,291 crore for the purpose during the current year.
Some of the budget announcements seem to be a step in the right direction, but a lot depends on the government’s intent and the administration’s ability to bring a positive change in the lives of citizens.