In his address to the Karnataka Legislature during the Karnataka Budget Session, which started on Monday, Governor Thawar Chand Gehlot emphasised the state’s strong economic growth, fiscal discipline, and welfare achievements.

He highlighted Karnataka’s “record-breaking” private investment inflows, second-highest FDI in the country, and GST growth. The Governor also noted advancements in agriculture, infrastructure, education, and technology, reinforcing Karnataka’s vision of becoming a $1 trillion economy.

Addressing the State Legislature on Monday, he said, “Many predicted the State would lag in development and that its financial system would deteriorate due to the ambitious welfare schemes launched by the Government. However, we proved this to be false. The State has recorded good achievements in every sector. Our income is increasing; private capital is flowing into the State in record numbers. The severity of inequality is decreasing due to the efficient implementation of welfare programmes.”

The Governor highlighted that the State has recorded significant achievements across sectors, with rising income, increased private investments, and a reduction in inequality. Karnataka ranks second in Foreign Direct Investment (FDI) and has a strong Goods and Services Tax (GST) growth rate.

Under welfare schemes, the “Shakti Yojana” has benefited over 376 crore citizens, with ₹8,215 crore allocated. The government has implemented guarantee schemes worth ₹52,000 crore annually, directly transferring ₹70,000 crore to beneficiaries’ bank accounts. Over Rs. 90,000 crore is spent annually on welfare programs benefiting 1.25 crore families, covering sectors like agriculture, housing, education, and social security.

To address regional imbalances, ₹37,662 crore has been spent based on the D.M. Nanjundappa committee report, with further studies underway. Additionally, ₹5,000 crore is allocated annually for developing the Kalyan Karnataka region.

Alongside, measures to curb harassment in micro-loan recovery have been introduced, including strict penalties. The government implemented an ordinance providing for a minimum sentence of 6 months, a maximum of 10 years and a fine of up to ₹5 lakh for persons who commit harassment.

The Gruha Jyothi scheme has benefited 1.62 crore consumers with subsidies of ₹17,290 crore. The Annabhagya Scheme ensures food security, benefiting over 4.48 crore people, with a new initiative to provide 10 kg of grains per person.

Housing initiatives include the construction of 3.05 lakh houses at ₹4,761.15 crore, the distribution of 1.66 lakh title deeds to slum dwellers, and the reduction of beneficiary contributions under the Pradhan Mantri Awas Yojana.

For the comprehensive development of Scheduled Castes and Scheduled Tribes, in 2024-25, ₹27,674 crore under SCSP and ₹11,447 crores under TSP, totaling ₹39,121 crore is being allocated and spent.

In addition, ₹2,000 is given monthly to female heads of families under the Gruhalakshmi Scheme, benefiting 1.26 crore women and gender minorities. The Bhagyalakshmi-Sukanya Samriddhi Yojana supports girl children in below-poverty-line families.

The Bengaluru Development Authority is constructing 30,000 housing units, and the Cauvery project now supplies drinking water to 50 lakh people. Indira Canteens continues to provide affordable food, with expansion underway.

In business and infrastructure, Karnataka secured ₹10.27 lakh crore in MoUs during the Global Investors Meet. The Governor highlighted that the State is a leader in capital investment and exports, with a new Knowledge, Wellness, and Innovation (KWIN) City planned near Bengaluru. MSME growth is supported by ₹687 crore, and a textile park in Kalaburagi is expected to create one lakh jobs.

The aviation sector sees expansion, with new airport developments in Vijayapura, Mysuru, and Raichur. The Bengaluru Suburban Railway Project, worth ₹15,767 crore, aims to reduce city traffic congestion. Road and rail projects include the development of 2,491 km of highways, new railway tracks, and the Bengaluru Peripheral Ring Road project.

Urban development plans feature a double-decker flyover with metro and road integration, easing traffic congestion in Bengaluru. Water supply modernization projects are ongoing in multiple cities, with funds allocated for drinking water and drainage improvements. The government continues efforts to strengthen the biotechnology sector and attract global investments through new policies.

He said that the State’s fiscal management remains strong, with a 13% growth in revenue collection and robust GST contributions. The government aims to transform Karnataka into a trillion-dollar economy, ensuring sustainable growth across all sectors.