FY26 Budget to Be Revenue Surplus, Says Siddaramaiah

Asserting that his government has been managing the state's finances with fiscal discipline, chief minister Siddaramaiah on Thursday strongly defended the 2025-26 budget he presented last week, stating that the budget next year would be revenue surplus.

- Press Trust of India

BENGALURU:

Hitting back at the opposition BJP, which criticised his government over increased borrowings, he urged them to examine the budget and borrowings of the Narendra Modi-led central government.

The chief minister, who also holds the finance portfolio, intervened during the Assembly discussion on the budget, which was initiated by Leader of the Opposition R Ashoka.

"I'm committed to the statement I made in the House in 2017. The Fiscal Responsibility Act outlines three criteria for maintaining a healthy state economy: it should be a revenue surplus, the fiscal deficit should be below 3 per cent, and borrowings should be below 25 per cent of the Gross State Domestic Product (GSDP)," Siddaramaiah said.

He added, "Of these three, we have not been able to meet only one criterion—being revenue surplus. We currently have a revenue deficit. Last year, the deficit was higher, but we have managed to reduce it. The revenue deficit has been pegged at ₹19,262 crore for 2025-26, down from ₹27,354 crore last year. We will be in revenue surplus next year." The state's fiscal deficit is 2.91%, and borrowings stand at 24.95% of the GSDP, thereby meeting the other two criteria of the Fiscal Responsibility Act, he said.