BENGALURU, 6 MARCH

As Chief Minister Siddaramaiah presents his 16th budget on Friday, he faces the challenge of balancing development with social welfare initiatives. While borrowing remains inevitable to fund cash-strapped guarantee schemes, prioritising infrastructure development is equally crucial for the state's growth.

With the 2025-2026 budget expected to exceed Rs 4 lakh crore, up from Rs 3.71 lakh crore in 2024–25, allocations for the five guarantee schemes are also likely to surpass Rs 52,000 crore due to an anticipated rise in beneficiaries.

This raises a critical question – how will the budget impact these guarantee schemes?

Speaking to Salar News ,Dr G Shreekumar Menon,  IRS officer and Director General of the National Academy of Customs, Indirect Taxes & Narcotics (NACIN), said, “While social welfare allocations are essential, a continuous increase without a corresponding rise in revenue could strain day-to-day governance.”

Menon said although freebie schemes have helped boost household incomes, they come at a significant cost to the state exchequer. 

Raghavendra Poojari HS, programme lead at Bangalore Political Action Committee (B.PAC), said: ‘The government’s financial commitment to welfare schemes has been significant. In 2024–25 budget, Rs 53,674 crore (15.49% of the budget) was allocated for this. These schemes have benefited 1.5 crore Gruha Jyoti recipients, 1.15 crore BPL families under Anna Bhagya, millions of women using Shakti Yojana for free bus travel, and nearly two lakh unemployed youth under Yuva Nidhi.

However, misuse of benefits through fake BPL cards is draining state finances. Stricter verification is crucial to ensure aid reaches genuine beneficiaries.