The Karnataka e-state budget for 2025-26 presents a strategic vision emphasizing fiscal discipline and robust investments in infrastructure. With a projected expenditure of Rs 4.09 lakh crore, key highlights include:
- Increased funding for Bengaluru’s infrastructure development
- New interest subvention scheme for affordable housing
Significant Investment in Bengaluru’s Infrastructure
The Karnataka government has announced a remarkable increase in the budget allocation for infrastructure development in Bengaluru, raising it from Rs 3,000 crore to an impressive Rs 7,000 crore. This substantial funding is indicative of a focused effort to enhance the city’s infrastructural backbone. Chief Minister Siddaramaiah stated, “Our commitment to transforming Bengaluru’s infrastructure is unwavering. This budget reflects our vision for a modern and efficient city.”
Furthermore, the budget outlines initiatives to address the housing crisis. The newly introduced interest subvention scheme aims to alleviate the financial burden on beneficiaries of the Affordable Housing Project, facilitated by the Rajiv Gandhi Housing Corporation. The state government plans to contribute Rs 5 lakh per beneficiary under the Pradhan Mantri Awas Yojana Urban, significantly lowering the beneficiaries’ contribution to just Rs 1 lakh.
Expanding Housing and Development Initiatives
The Karnataka Slum Development Board has already sanctioned the construction of over 1.8 lakh houses, with nearly 50% of these completed. The Karnataka Housing Board is also working on developing 16,140 plots in the Suryanagar Phase-IV Scheme in Anekal taluk. These plots will be made available to landowners and the public at affordable rates, showcasing the government’s commitment to affordable housing.
To further streamline property management, the Chief Minister announced that all registered housing cooperative societies will soon have their details accessible online. In addition, the Bruhat Bengaluru Mahanagara Palike (BBMP) has implemented the e-Khata system, which has notably improved municipal services and boosted property tax collection, adding an impressive Rs 4,556 crore in revenue for the city.
Future Implications for Bengaluru’s Urban Landscape
The proposed budget also allocates a special grant of Rs 7,000 crore to the BBMP, an increase of Rs 4,000 crore compared to the previous year. This funding is crucial for executing the ‘Brand Bengaluru’ initiative, which has earmarked Rs 1,800 crore for 21 development schemes aimed at enhancing the city’s global presence.
In light of rising flood risks, the state has committed Rs 3,000 crore for flood mitigation measures, with Rs 2,000 crore specifically allocated for the BBMP area. The budget also includes provisions for a 40.5 km double-decker flyover and the much-anticipated Namma Metro Phase-3 project, which aims to significantly improve traffic flow and mobility throughout Bengaluru.
As Karnataka moves forward with this ambitious budget, the implications for its infrastructure and housing landscape are profound. The investments laid out are poised to transform Bengaluru into a more livable and efficient city. “This budget not only addresses immediate needs but sets the stage for sustainable urban growth,” said urban development expert Dr. Neeta Rao. “The focus on infrastructure and housing will have long-term benefits for residents and the economy.”
