Siddaramaiah defends five guarantees, calls them strategic investments in 16th budget

He also underscored that the budget remains “development-oriented.”

Karnataka Chief Minister Siddaramaiah, while presenting his record 16th budget on Friday, strongly defended the state’s five guarantee schemes and attributed fiscal challenges to the Union government. He also underscored that the budget remains “development-oriented.”

Karnataka Chief Minister Siddaramaiah.(CMO )

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

Due to ongoing knee pain, Siddaramaiah delivered his budget speech while seated in the Assembly.

The government has the responsibility to ensure that available resources are accessible to everyone, by balancing economic development with people's welfare. The administration was shaping Karnataka's development model through the concept of "Universal Basic Income", said Siddaramaiah.

“Many of the welfare programs, including the Five Guarantees, are not merely freebies but strategic investments based on economic and social principles, Karnataka Chief Minister Siddaramaiah said in his budget speech. He emphasized that these schemes aim to address deep-rooted social inequalities and uplift marginalized communities,” he said.

Citing Muzaffar Assadi, a renowned scholar from the state, Siddaramaiah stated, "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."

The chief minister noted that this year's budget will focus on implementing programmes across six key developmental dimensions: Welfare Programmes Budget, Agriculture and Rural Development Budget, Development-Oriented Budget, Prioritizing Urban Development, Investment and Job Creation and Governance Reforms.

"In addition to these initiatives, we will prioritise new strategies to eliminate regional disparities, strengthen education and health sectors, ensure an efficient transport system, and maintenance of law and order. This budget emphasises on empowering the helpless through welfare departments," he said.

The state has made a strong argument before the 16th Finance Commission for an increase in share in tax devolution. Karnataka has impressed upon the commission to strike a judicious balance between the twin considerations of equity and growth from the viewpoint of evolving a harmonious and healthy fiscal federalism, the CM said.

"While economically advanced states are committed to supporting poorer states, it should not be at the expense of their own residents or economic efficiency," he said.