Karnataka's Budget Anticipations: A Call for Fair Federal Support

Ahead of the Union Budget 2025-26, Karnataka Minister HK Patil stresses fair allocation to fortify India's federal structure. Industry leaders push for increased investments in renewable energy and domestic manufacturing, urging revisions in tax structures and policy support to enhance innovation and energy security.

As the Union Budget 2025-26 is poised to be tabled, Karnataka's Minister of Law, Parliamentary Affairs, and Legislation, HK Patil, has articulated the state's aspirations for equitable treatment in the Central Government's financial plan. Patil stressed that the budget should reinforce India's federal framework through judicious allocations.

Set for announcement on February 1, sector leaders in energy are pressing for increased investment in renewables, domestic manufacturing support, and a streamlined tax structure. Calls to prioritize solar, wind, green hydrogen, energy storage, and grid modernization are intensifying ahead of the budget announcement.

A consensus among industry leaders emphasizes the necessity of enhanced policy backing to minimize import reliance and invigorate domestic manufacturing and innovation. Expectations include venture capital funding support, MSME growth encouragement, and focus on emerging technologies such as AI and robotics.

In anticipation, industry figures are advocating for improved government assistance through sector-specific funds, enhancements to the domestic venture capital landscape, and proposed ESOP taxation adjustments. Additionally, a State Bank of India report underscores the need for revitalizing insurance and healthcare sectors.

The report suggests GST and tax exemptions on insurance premiums, expanding the healthcare budget, and uniform GST rates for medical devices. The Ministry of Finance had earlier announced initiatives in the semiconductor and electronics sectors aiming to incentivize development.

A recent social media update by the finance ministry highlighted the 'Programme for development of Semiconductors and Display Manufacturing Ecosystem,' aiming to extend support to semiconductor packaging and design firms. (ANI)

(With inputs from agencies.)