Fri Mar 07 16:45:31 UTC 2025: ## Karnataka Tweaks Subsidy Budget Amidst Economic Changes
**Bengaluru, March 7, 2025** – The Karnataka government has announced adjustments to its subsidy budget for the 2025-2026 fiscal year, reflecting changes in the state’s economic climate. While the overall subsidy allocation has increased marginally by 2.05% to ₹80,069 crore from ₹78,460 crore, individual departmental budgets show both increases and decreases.
A significant reduction stems from the discontinuation of the ₹170 direct benefit transfer (DBT) for five kg of rice, resulting in a ₹1,700 crore decrease in the Food and Civil Supplies Department’s subsidy. The Anna Bhagya scheme, which includes the rice subsidy, saw a 20.46% reduction, falling from ₹8,079 crore to ₹6,426 crore. Officials attribute this decrease to lower rice prices, projecting savings of around ₹9 per kg.
Conversely, the Energy Department, which oversees the Gruha Jyothi guarantee scheme, experienced a substantial 16.24% increase, rising from ₹22,492 crore to ₹26,146 crore. This increase is largely due to added subsidies for irrigation pump sets. The Gruha Jyothi scheme itself saw a more modest 4.58% increase.
Other schemes also saw adjustments. Shakti received a 5.68% increase, while Yuvanidhi saw a significant 46.34% boost. However, the Industries and Commerce Department experienced a drastic 60.79% reduction in its subsidy allocation. A Finance Department official stated that inflation influenced the increases seen in Shakti and Gruha Jyothi, while the Gruhalakshmi scheme maintained its allocation of ₹28,608 crore. These changes have sparked national political debate surrounding government guarantee funding.
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