The revenue deficit in the Budget presented by Chief Minister Siddaramaiah on Friday, which is due to the implementation of the five guarantee schemes of the Congress, is unlikely to come down at least till 2026-2027.
The revenue deficit has increased from ₹ 12,523 crore in 2023-2024 (when the government estimated to spend ₹ 36,000 crore on guarantees) to ₹ 27,254 crore in 2024-2025 with the government allocating ₹ 52,000 crore. This is likely to up further. The revenue deficit that was 0.49 % of the GSDP in 2023-24 will increase to 0.97 % in 2024-2025. In 2022-2023, the State had a revenue surplus budget due to the ₹20,000 crore released by the Centre as GST compensation.
“We do not expect the revenue deficit to come down at least till 2026-2027. Barring Gruha Jyothi, which is expected to increase by about 8 % to 10 %, the cost incurred on other guarantees of Gruha Lakshmi, Anna Bhagya and Shakti, is expected to remain stable. On the other hand, we expect resource mobilisation to increase by 10 % to 12 % annually. This would mean, the revenue deficit will remain for at least next two financial years,” a Revenue Department official said.
