Karnataka excels in fiscal performance for 2024-25, generates Rs 1,03,689 crore in revenue

PTI, Oct 31, 2024, 12:01 PM IST

Bengaluru: Karnataka has achieved outstanding fiscal performance in the first seven months of 2024-25, generating Rs 1,03,689 crore in revenue, achieving 53 per cent of its annual target of Rs 1,96,525 crore across five major revenue departments, officials said on Wednesday.

The departments include commercial taxes (GST), excise, mining, stamps and registration, and transport, they said.

“With a year-on-year growth rate of 11.2 per cent, this achievement reflects the state’s robust economic fundamentals driven by strong economic growth, increased consumer demand, better governance, and the government’s focus on creating a business-friendly environment. This sentiment resonates globally, as Karnataka has climbed from third place in 2023-24, surpassing Gujarat, to second place in FDI inflows during the first quarter of 2024-2025,” the government said in a statement.

The state attracted a total of $2.2 billion in investments in the first quarter, reflecting growing investor confidence in its progressive economic policies, it said.

The government has implemented bold reforms by revising stamp duties, excise duties, and user fees, which had remained stagnant for years. Additionally, the mining sector has overcome long-standing interdepartmental challenges, positioning itself to exceed its revenue targets.

“Enhanced efficiency in administration has enabled the state to enhance budget utilisation, with 46 per cent of the budget estimates (BE) already spent by October 2024, compared to 42 per cent in the previous fiscal period. Capital expenditure has risen to 29 per cent of BE, up from 24.7 per cent last year, demonstrating the government’s commitment to infrastructure development,” it stated.

“The government has silenced critics questioning its ability to fund welfare guarantees, having already allocated Rs 24,235 crore out of a budgeted Rs 52,009 crore. Leveraging e-governance models, the state ensures accurate identification of beneficiaries, eliminating inefficiencies while maximising the impact of welfare schemes,” it added.

The government said that Karnataka aims to sustain economic growth rate (GSDP) at 14 per cent by maintaining capital expenditure above 2 per cent of GSDP in the current fiscal year.