Karnataka projects GSDP of Rs 30.91 lakh crore in current fiscal

Belagavi (Karnataka), Dec 17 (PTI) The Karnataka government on Wednesday said the state’s economy is expected to remain on a growth trajectory this fiscal, supported by adequate rainfall.

In its report titled 'Mid-Year Review of State Finances', presented in the state Assembly, the government projected the Gross State Domestic Product (GSDP) at Rs 30,91,111 crore for 2025-26, citing the Ministry of Finance.

"State economy is expected to continue its growth trajectory in 2025-26, with adequate rainfall likely to further boost agricultural output, while strong performance in the services and industrial sectors sustains economic momentum," the report said.

The government said inflation remained under control during the first half of the fiscal year, aided by a good monsoon that helped keep food prices low.

Karnataka’s fiscal performance in the first half of 2025-26 was strong, with revenue collections recording a year-on-year growth of 7.7 per cent, the report said.

"The state continues to demonstrate robust tax administration and economic activity, ranking second in the country in gross GST collections during the first half of 2025-26," it added.

In terms of expenditure, total spending in the first half reached 36.4 per cent of the budget estimates. Expenditure on capital projects increased by 32.3 per cent compared with the same period in 2024-25, the report said.

The fiscal deficit for the state, which has a budget of Rs 4,09,549 crore for 2025-26, is estimated at 2.95 per cent of the GSDP. PTI GMS GMS SSK