Government budget and revenue in Karnataka, India: official figures
The state government budgeted ₹154,971 crore for social sectors such as education, health, housing and welfare in 2024-25, and expected ₹189,893 crore from its own taxes (budget estimate).
How much tax does the Karnataka government raise?
Its own tax revenue works out at about ₹27,820 per resident in 2024-25 (4th highest of 31 with figures), and it expected a further ₹13,500 crore of non-tax revenue such as mining royalties, fees and dividends. The rest of its income comes from its share of central taxes, central grants and borrowing.
Source: Reserve Bank of India · saved copyHow much does the Karnataka government borrow?
The state government planned to borrow ₹82,981 crore to cover its fiscal deficit in 2024-25, 2.9% of its GSDP (budget estimate; 7th lowest of 25 with figures). The usual ceiling for states under fiscal responsibility rules is about 3%.
Source: Reserve Bank of India · saved copyHow much debt does the Karnataka government have?
The state government owed ₹7.25 lakh crore at the end of March 2025, equal to 25.2% of its 2024-25 GSDP and about ₹105,600 per resident; 4th lowest of 25 with figures. All states and UTs together owed ₹93.93 lakh crore.
Source: Reserve Bank of India · saved copyHow much does the Karnataka government spend on interest and pensions?
Interest on past borrowing takes 13.5% of the state's day-to-day (revenue) spending of ₹2.91 lakh crore in the 2024-25 budget (all states and UTs: 11.9%; 7th highest of 31 with figures), and pensions for retired staff another 11.1%.
Source: Reserve Bank of India · saved copyHow Karnataka compares with other states
State government debt (outstanding liabilities) as % of GSDP (March 2025)
Karnataka ranks 22 of 25, highest first. Outstanding liabilities at end-March 2025 divided by gross state domestic product for 2024-25.
| Rank | Region | State government debt (outstanding liabilities) as % of GSDP |
|---|---|---|
| 19 | Telangana | 27.0% |
| 20 | Jharkhand | 26.1% |
| 21 | Uttarakhand | 25.2% |
| 22 | Karnataka | 25.2% |
| 23 | Maharashtra | 17.9% |
| 24 | Odisha | 17.4% |
| 25 | Delhi | 1.3% |
Budgeted fiscal deficit as % of GSDP (2024-25 (budget))
Karnataka ranks 19 of 25, highest first.
| Rank | Region | Budgeted fiscal deficit as % of GSDP |
|---|---|---|
| 16 | Telangana | 3.0% |
| 17 | Bihar | 2.9% |
| 18 | Uttar Pradesh | 2.9% |
| 19 | Karnataka | 2.9% |
| 20 | Haryana | 2.8% |
| 21 | Uttarakhand | 2.5% |
| 22 | Maharashtra | 2.4% |
Interest payments as % of revenue spending (2024-25 (budget))
Karnataka ranks 7 of 31, highest first. Interest on past borrowing divided by revenue (day-to-day) expenditure, budget estimates.
| Rank | Region | Interest payments as % of revenue spending |
|---|---|---|
| 4 | Kerala | 17.2% |
| 5 | West Bengal | 16.9% |
| 6 | Gujarat | 13.6% |
| 7 | Karnataka | 13.5% |
| 8 | Himachal Pradesh | 13.4% |
| 9 | Rajasthan | 12.9% |
| 10 | Jammu and Kashmir | 12.6% |
More on Karnataka: overview · economy and jobs · health · education and schools · poverty and living standards · India
Sources
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 176: State-wise Composition of Outstanding Liabilities, read 23 October 2026 · saved copy (SHA-256 df4d117b3949…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 164: State-wise Gross Fiscal Deficit, read 23 October 2026 · saved copy (SHA-256 5e1a742f710e…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 170: State-wise Interest Payments, read 23 October 2026 · saved copy (SHA-256 615f96758e43…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 168: State-wise Own Tax Revenue, read 23 October 2026 · saved copy (SHA-256 b25a8b6f2ff7…)
- Reserve Bank of India: Handbook of Statistics on Indian States 2024-25, Table 175: State-wise Social Sector Expenditure, read 23 October 2026 · saved copy (SHA-256 6b8f611c50f5…)
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