Karnataka’s Economic Model Gains Global Recognition: Governor Highlights Progress in Budget Session

Bengaluru: Karnataka Governor Thaawar Chand Gehlot, in his address at the joint session of the Assembly on the first day of the Budget Session, emphasized the state’s remarkable economic progress, robust governance, and effective law and order management.

He stated that Karnataka’s governance model is being studied by economists and universities worldwide, including Oxford University and the United Nations, for its transformative impact on economic and social development.

Law and Order: A Stable Environment for Growth

Governor Gehlot highlighted that over the past 19 months, no major law and order crises have arisen in Karnataka. He praised the state police for their proactive approach in handling cybercrimes, stating that continuous awareness campaigns and rapid identification of cybercriminals have led to a decline in such offenses.

However, this assertion has sparked debates, as the Opposition Bharatiya Janata Party (BJP) has repeatedly criticized the state government’s handling of incidents, including attacks on police stations. The BJP has accused the ruling Congress of practicing appeasement politics, making the law and order situation a contentious issue in the Assembly.

Karnataka’s Economic Boom: Welfare and Fiscal Stability

Governor Gehlot addressed concerns over the financial sustainability of Karnataka’s ambitious welfare programs. He reaffirmed that despite initial skepticism, the state has achieved significant growth across sectors, proving critics wrong.

Key highlights of Karnataka’s economic progress include:

• Increased State Revenue: Karnataka’s income has been rising steadily, with record private capital inflows and robust Goods and Services Tax (GST) growth.
• Foreign Direct Investment (FDI): Karnataka ranks second in India for FDI, reinforcing its position as a preferred investment destination.
• Reduction in Economic Inequality: The implementation of welfare schemes has played a crucial role in bridging socio-economic disparities.

Welfare Programs: Transforming Lives

Governor Gehlot emphasized the impact of the Congress-led government’s five flagship welfare schemes, stating that over Rs 70,000 crore has been directly transferred to beneficiaries’ bank accounts. Annually, the government is spending over Rs 90,000 crore on social welfare initiatives.

Oxford University has lauded Karnataka’s model, describing it as “shining a light in the darkness” and a “blueprint for the world” in its Human Rights Hub. The United Nations has also acknowledged the state’s welfare-driven governance approach.

Agriculture and Environmental Protection

With good monsoon rains, Karnataka expects agricultural production of approximately 149 lakh tonnes from the Kharif and Rabi seasons. Additionally, farmer suicides have significantly declined due to government welfare programs and financial assistance initiatives.

The government has also focused on environmental conservation, initiating:

• The reclamation of forest land worth Rs 14,300 crore from the defunct central government-owned HMT in Peenya plantation to create a green lung space.
• The notification of 15,000 additional acres as reserved forest.
• The removal of encroachments from 5,000 acres of forest land across Karnataka, including 117 acres in Bengaluru.

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Infrastructure Development and Future Growth

The Karnataka government is prioritizing infrastructural expansion to support economic growth:

• New Airport Projects: Plans for a second airport in Bengaluru are underway, along with land acquisition for an airport near the Karwar Naval base.
• Budget Allocation for Capital Expenditure: Karnataka is allocating 15.01% of its 2024-25 budget to capital expenditure, surpassing progressive states like Maharashtra, Tamil Nadu, and Kerala.
• Vision for a $1 Trillion Economy: Comprehensive efforts are in place to make Karnataka a $1 trillion economy by attracting investments and boosting industrial growth.

Upcoming Budget and Political Challenges

Chief Minister Siddaramaiah is set to present Karnataka’s 2025-26 budget on March 7. This will be his 16th budget presentation—the highest by any leader in the state’s history. The budget is expected to be around Rs 4 lakh crore, focusing on welfare, infrastructure, and economic growth.

The budget session is anticipated to be action-packed, with the Opposition BJP and Janata Dal (Secular) [JD(S)] gearing up to challenge the Congress government over various issues, including the feasibility of guarantee schemes and the state’s growing debt, which is projected to reach Rs 1 lakh crore in the 2025-26 financial year.