Karnataka’s Budget 2025 focuses on affordable housing, infrastructure, and flood miti
Karnataka’s Budget 2025 focuses on affordable housing, infrastructure, and flood mitigation
M.U.H
08/03/202522
Karnataka Chief Minister Siddaramaiah, presenting the state budget for 2025-26 on March 7, emphasized the government’s commitment to fiscal discipline while unveiling initiatives to strengthen infrastructure and drive economic growth.
The total estimated expenditure for the year stands at ₹4.09 lakh crore, with key focus areas including affordable housing, flood mitigation, and easing Bengaluru’s traffic congestion. The Chief Minister also highlighted the need for robust infrastructure development, particularly in Bengaluru, increasing its allocation from ₹3,000 crore to ₹7,000 crore in the 2025 Budget.
Plans to boost affordable housing in the state
Siddaramaiah said that the state government plans to formulate an interest subvention scheme aimed at reducing the interest burden on beneficiaries under the Affordable Housing Project, which is being implemented by the Rajiv Gandhi Housing Corporation.
"The contribution of beneficiaries under the Pradhan Mantri Awas Yojana (Urban) has been reduced to ₹1 lakh and the state government is contributing ₹5 lakh on behalf of the beneficiaries," the budget speech said.
Siddaramaiah stated that the Karnataka Slum Development Board has approved the construction of 1,80,253 houses. Of these, 86,651 have been completed, while the remaining units will be completed soon.
"Karnataka Housing Board will develop a total of 16,140 plots in Suryanagar Phase-IV Scheme in Anekal taluk of Bengaluru Urban district in 2025-26. These plots will be distributed to the landowners on a 50:50 basis and the remaining will be distributed to the public at affordable rates," the budget speech added.
The details of all registered housing cooperative societies of the state will be made online through the Karnataka State Co-operative Housing Federation, he said.
E-khata, various reforms increased property tax collection for Bengaluru
Siddaramaiah said that Bengaluru's municipal corporation Bruhat Bengaluru Mahanagara Palike (BBMP) has substantially increased property tax collection by implementing various reforms.
"Adoption of online e-Khata and use of technology has resulted in simplified public service delivery along with an increase in revenue collection. BBMP (Estate Management) Rules, 2024 have also been notified for better management and regulation of the Corporation’s own properties. All these reform measures have yielded an additional revenue of Rs. 4,556 crore," he said in his budget speech.
The budget allocated a special grant of ₹7,000 crore to BBMP for 2025-26, increasing the yearly allocation by ₹4,000 crore.
Focus on 'Brand Bengaluru' and Tier II, III cities
Siddaramaiah said that Bengaluru has been witnessing ambitious projects implemented under ‘Brand Bengaluru’ to improve infrastructure, service delivery and traffic management.
"Plans have also been designed to reduce the pressure on Bengaluru by comprehensively developing second and third-tier cities. To strengthen the 'Brand Bengaluru’ Plan, Rs. 1,800 crore has been set aside for 21 schemes during the FY 2024-25," Siddaramaiah said.
The budget further outlined the rejuvenation of lakes under the ‘Brand Bengaluru – Green Bengaluru’ plan. "Works related to 14 lakes are under progress through BBMP for Rs. 35 crore. Varthur and Bellandur Lake rejuvenation works have been taken up for Rs. 234 crore by Bengaluru Development Authority," the speech added.
Flood mitigation
To tackle climate change-induced flooding in Bengaluru, Siddaramaiah said the government will provide BBMP and Bangalore Water Supply and Sewerage Board (BWSSB) with financial assistance of ₹3,000 crore.
"Flood Management System will be taken up in the BBMP area for Rs. 2,000 crore," the budget speech added.
Decongesting Bengaluru
The budget outlined the development of a 40.5 km double-decker flyover at a cost of ₹8,916 crore, along with the Namma Metro Phase-3 project, aimed at mitigating vehicular congestion and ensuring smooth traffic flow.
