BENGALURU: In the first seven months of 2024-25, the state generated Rs 1,03,689 crore in revenue, achieving 53% of its annual target of Rs 1,96,525 crore across five major revenue departments; commercial taxes (GST), excise, mining, stamps and registration and transport.
“With a year-on-year growth of 11.2%, this achievement reflects the state’s robust economic fundamentals driven by strong economic growth,” said a statement from the Chief Minister’s Office. The state attracted a total of $2.2 billion in investments in the first quarter and climbed from third place in 2023-24, surpassing Gujarat, to the second place in FDI inflows during the first quarter of 2024-25.
“The government has silenced critics questioning its ability to fund welfare guarantees, having already allocated Rs 24,235 crore out of a budgeted Rs 52,009 crore. Leveraging e-governance models, the state ensures accurate identification of beneficiaries, eliminating inefficiencies, while maximising the impact of welfare schemes,” the statement said.
The CMO statement said the government has implemented bold reforms by revising stamp duties, excise duties and user fees, which had remained stagnant for years. Karnataka’s fiscal strategy balances welfare guarantees with capital investments, leveraging innovative financing models to drive sustainable development, the statement said.
Karnataka aims to sustain economic growth rate (GSDP) at 14% by maintaining capital expenditure above 2% of GSDP in the current fiscal year. The government is in advanced talks with various external funding agencies such as the World Bank and Asian Development Bank in order to execute infrastructure projects.
The government is pursuing Rs 16,750 crore in projects with international financial institutions, including: Disaster resilience initiatives in Bengaluru - Rs 3,500 crore; Blue Economy transformation in Coastal Karnataka - Rs 600 crore; Urban water supply modernisation - Rs 1,200 crore; Climate-smart rural roads (Pragati Patha) - Rs 3,600 crore; State highway improvements - Rs 3,650 crore; Irrigation - Rs 500 crore; Public school infrastructure development - Rs 2,800 crore; and Electric buses for public transportation - Rs 1,400 crore. According to the statement, the projects that are in the pipeline are: 100 km of elevated corridors - Rs 12,000 crore; Double-decker Metro lines - Rs 9,000 crore; 80 km of additional Metro under Phase-3 and 3A - Rs 40,000 crore; India’s largest 40-km underground urban tunnel - Rs 40,000 crore; Peripheral road network development - Rs 3,000 crore; Sky Deck project - Rs 500 crore; and Bangalore Business Corridor - Rs 27,000 crore. “Bengaluru’s infrastructure landscape is set for a transformation with projects worth Rs 1,31,500 crore,” it added.