Bengaluru, Jan. 16 -- Karnataka is staring at a potential fiscal crisis as over-optimistic revenue projections and administrative shortcomings threaten the state government's budget targets. With only Rs 1.38 lakh crore mobilised against a target of Rs 2.03 lakh crore for the current financial year, officials privately estimate a shortfall of Rs 9,000-13,000 crore by year-end, exposing weaknesses in fiscal planning and execution.
The budget for 2025-26 was based on the assumption of steady growth in tax revenues, expected to fund welfare schemes, infrastructure projects, and routine administrative expenditure. However, the gap between expectations and actual collections has highlighted fragilities in the government's revenue strategy, with...