The Karnataka state government has unveiled its budget for the fiscal year, with a focus on fiscal prudence and debt reduction. The budget allocates 30% of the total expenditure towards debt repayment, aiming to reduce the state’s fiscal deficit to 2.5% of the GDP. This move is expected to boost investor confidence and stimulate economic growth.
With a total outlay of Rs 2.5 trillion, the budget prioritizes infrastructure development, healthcare, and education. The government has also introduced measures to increase tax revenue, including a 5% increase in VAT on luxury goods. Overall, the budget strikes a balance between fiscal discipline and social welfare, setting a positive tone for the state’s economic prospects.