Karnataka State Budget 2023-24 Analysis
Revised EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2023-24
Karnataka State Budget 2023-24 Budget at a Glance
Total Receipts
Rs 2.4 lakh crore
-2.0%
Total Expenditure
Rs 3.1 lakh crore
+1.6%
Fiscal Deficit
2.6%
Rs 70,000 crore
Capital Expenditure
Rs 50,000 crore
0.0%
Tax Revenue
Rs 1.26 lakh crore
-20.3%
Interest Payments
Rs 32,000 crore
10% of expenditure
Karnataka Revenue Receipts 2023-24
Own tax revenue vs non-tax revenue breakdown
Karnataka Expenditure Breakdown 2023-24
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Karnataka 2023-24
The fiscal deficit for Karnataka in 2023-24 is 2.6% of GSDP (Rs 70,000 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 32,000 crore consume 10.3% of total expenditure.
Karnataka State Budget 2023-24 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 3.05 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.4 lakh crore | 78.7% |
| a. Own Tax Revenue | Rs 1.26 lakh crore | 41.3% |
| b. Non-Tax Revenue | Rs 14,500 crore | 4.8% |
| B. Total Expenditure | Rs 3.1 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.6 lakh crore | 83.9% |
| 2. Capital Expenditure | Rs 50,000 crore | 16.1% |
| of which: Interest Payments | Rs 32,000 crore | 10.3% |
| C. Fiscal Deficit | Rs 70,000 crore | 2.6% of GSDP |
Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.
Karnataka Department-wise Expenditure 2023-24
Top departments by allocation in Karnataka for 2023-24
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 34,000 crore | Rs 4,000 crore | Rs 38,000 crore | 12.3% |
2. Rural Development & Panchayat Raj | Rs 22,000 crore | Rs 6,000 crore | Rs 28,000 crore | 9.0% |
3. Health & Family Welfare | Rs 18,000 crore | Rs 3,500 crore | Rs 21,500 crore | 6.9% |
4. Water Resources | Rs 8,000 crore | Rs 9,000 crore | Rs 17,000 crore | 5.5% |
5. Transport & Infrastructure | Rs 6,000 crore | Rs 10,000 crore | Rs 16,000 crore | 5.2% |
6. Agriculture & Allied | Rs 14,000 crore | Rs 2,000 crore | Rs 16,000 crore | 5.2% |
7. Energy | Rs 12,000 crore | Rs 3,000 crore | Rs 15,000 crore | 4.8% |
8. Urban Development | Rs 10,000 crore | Rs 4,000 crore | Rs 14,000 crore | 4.5% |
9. Social Welfare | Rs 12,000 crore | Rs 1,200 crore | Rs 13,200 crore | 4.3% |
10. Police & Home | Rs 11,000 crore | Rs 1,200 crore | Rs 12,200 crore | 3.9% |
Karnataka Budget 2023-24 Analysis & Highlights
Key Highlights
- Revised estimates show expenditure at Rs 2.95 lakh crore, 7% above initial budget.
- Guarantee schemes cost Rs 35,000 crore in partial-year implementation โ above initial estimates.
- State GST collections reached Rs 82,000 crore, growing 15% year-on-year.
- Bengaluru IT corridor saw record commercial real estate absorption of 55 million sq ft.
- Cauvery water release to Tamil Nadu during drought created Rs 1,500 crore in irrigation losses.
- Capital expenditure utilization at 80%, constrained by metro construction delays.
- Education spending at Rs 35,000 crore included 15,000 new teacher recruitment.
- Mining revenue from Bellary iron ore belt contributed Rs 4,000 crore in royalties.
- Fiscal deficit revised to 3.1% of GSDP from budgeted 2.5% due to guarantee scheme costs.
- Northern Karnataka development board received Rs 5,000 crore for regional equity investments.
Compare Karnataka Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 3.05 lakh crore | Rs 3.1 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.45 lakh crore | Rs 2.4 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 50,000 crore | Rs 50,000 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.5% | 2.6% |
| Own Tax Revenue | โ | โ | โ | Rs 1.58 lakh crore | Rs 1.26 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Karnataka State Budget 2023-24
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.
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Compare Karnataka with other states
Side-by-side comparison of fiscal metrics across Indian states