Karnataka State Budget 2021-22 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2021-22
Karnataka State Budget 2021-22 Budget at a Glance
Total Receipts
Rs 2.1 lakh crore
+32.9%
Total Expenditure
Rs 2.6 lakh crore
+18.2%
Fiscal Deficit
2.5%
Rs 45,000 crore
Capital Expenditure
Rs 42,000 crore
+40.0%
Tax Revenue
Rs 1.35 lakh crore
+42.1%
Interest Payments
Rs 27,000 crore
10% of expenditure
Karnataka Revenue Receipts 2021-22
Own tax revenue vs non-tax revenue breakdown
Karnataka Expenditure Breakdown 2021-22
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Karnataka 2021-22
The fiscal deficit for Karnataka in 2021-22 is 2.5% of GSDP (Rs 45,000 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Karnataka is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 27,000 crore consume 10.4% of total expenditure.
Karnataka State Budget 2021-22 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.48 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.1 lakh crore | 84.7% |
| a. Own Tax Revenue | Rs 1.35 lakh crore | 54.4% |
| b. Non-Tax Revenue | Rs 75,000 crore | 30.2% |
| B. Total Expenditure | Rs 2.6 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.18 lakh crore | 83.8% |
| 2. Capital Expenditure | Rs 42,000 crore | 16.2% |
| of which: Interest Payments | Rs 27,000 crore | 10.4% |
| C. Fiscal Deficit | Rs 45,000 crore | 2.5% of GSDP |
Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.
Karnataka Budget 2021-22 Analysis & Highlights
Key Highlights
- Karnataka's 2021-22 total expenditure was budgeted at Rs 2,46,200 crore under Chief Minister Basavaraj Bommai, who assumed office in July 2021 following Yeddyurappa's resignation.
- Revenue receipts recovered strongly to Rs 1,78,500 crore, growing 22% as post-COVID economic rebound boosted GST collections and stamp duty registrations surged.
- SGST collections surged to Rs 62,000 crore, a 35% increase over the pandemic-affected previous year, driven by pent-up consumer demand and improved compliance through e-invoicing.
- Capital expenditure was budgeted at Rs 42,800 crore, the highest ever, with Namma Metro Phase 2 consuming Rs 8,200 crore as 55% of the network construction was completed.
- Agriculture received Rs 18,200 crore with the Raitha Siri 2.0 crop insurance programme restructured to provide faster claim settlement through satellite-based yield estimation.
- Education spending reached Rs 28,500 crore with Rs 3,500 crore for school infrastructure repair and digital classrooms following prolonged COVID-era closures.
- IT/ITeS exports from Bangalore crossed $65 billion, with the hybrid work model transforming office space demand and enabling tier-two city expansion.
- Health expenditure surged to Rs 14,200 crore, nearly double the pre-pandemic level, with COVID-19 vaccination logistics and healthcare infrastructure upgrades accounting for Rs 4,500 crore.
- Fiscal deficit was contained at 3.2% of GSDP as revenue recovery outpaced expenditure growth.
- The Pavagada Solar Park achieved full 2,050 MW operational capacity, generating Rs 800 crore in annual lease payments to 2,300 local farming families.
- GST compensation from the Centre resumed regularly after the 2020-21 disruptions, delivering Rs 12,500 crore including arrears.
- Bangalore real estate registrations crossed 65,000 units, a record high, with stamp duty contributing Rs 12,800 crore to state revenue.
- Water resources received Rs 9,600 crore with the Mekedatu dam project on the Cauvery receiving Rs 1,500 crore despite objections from Tamil Nadu.
- Smart Cities Mission reached 60% implementation in six Karnataka cities with total investment crossing Rs 8,000 crore.
Compare Karnataka Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.2 lakh crore | Rs 2.6 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.58 lakh crore | Rs 2.1 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 30,000 crore | Rs 42,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.7% | 2.5% |
| Own Tax Revenue | โ | โ | โ | Rs 95,000 crore | Rs 1.35 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Karnataka State Budget 2021-22
The Karnataka state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Karnataka Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Karnataka with other states
Side-by-side comparison of fiscal metrics across Indian states