2 months ago
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The subsidies measure of Karnataka has gone up by a whopping ₹9,200 crore successful Budget Estimates (BE) for the twelvemonth 2026-27 compared to BE 2025-26.
Budget documents issued by the State authorities connected Friday shows it went up from ₹93,943.20 crore successful BE 2025-26 to ₹1,03,143.77 crore successful BE 2026-27. This adjacent arsenic the 5 guarantees bill, pegged astatine ₹51,286 crore, is astir aforesaid arsenic the erstwhile 2 years, indicating the subsidy measure being driven up northbound due to the fact that of different schemes. The emergence is driven by Energy, Finance, Revenue, Transport and Agriculture and Horticulture Departments.
The Medium Term Fiscal Plan (MTFP) Report tabled connected Friday attributes this emergence to “both enlargement successful beneficiary sum and upward revision of payment levels nether large payment schemes”.
“While specified expenditures beforehand important equity and societal objectives, they besides spot sustained unit connected the gross relationship by expanding the stock of committed expenditure,” it cautions.
It further quotes 16th Finance Commission Report, which it said “cautions that rising subsidy outlays, if not periodically assessed, tin constrain fiscal abstraction and impact expenditure quality. The Commission underscores the request for improved transparency successful accounting, sharper beneficiary targeting, outcome-based evaluation, and avoidance of open-ended commitments”.
MTFP recommends “structured reappraisal mechanisms, improved targeting done technology, and intelligibly defined reassessment oregon sunset provisions tin assistance sphere fiscal equilibrium portion continuing to enactment susceptible sections”.
