Karnataka elections 2023: GDP, per capita income, fiscal deficit. How Karnataka’s economy has performed under BJP rule since last elections in2018
Karnataka, which is known for its IT industry, has witnessed one of the fastest economic growths during the past five years. Karnataka is also one of the richest states in India having highest per capita income. The data available from the RBI, Karnataka state budget, and the economic survey showed that the economy of Karnataka has grown 68 per cent in past five years from 2018 to 2023. In the same duration country’s nominal GDP has increased 59 per cent to Rs 272 lakh crore in FY23 from Rs 171 lakh crore in FY18. Inflation and fiscal deficit in the state have also remained lower than the national average. While per capita income in Karnataka has increased faster than the national average. Here’s how the economic indicators for the state look:
Gross state domestic product (GSDP): Currently Karnataka contributes 8.2 per cent to the country’s GDP. In the last five years, Karnataka’s GSDP at current prices has surged 68 per cent to Rs 22.4 lakh crore in FY23 from Rs 13.33 lakh crore in FY18. According to the latest budget estimates for the state its GSDP will reach Rs 23.34 lakh crore by FY24. Karnataka is the third largest state economy in India. Only Maharashtra with a GSDP of 35.27 lakh crore and Tamil Nadu which has a GSDP of Rs 24.85 lakh crore are bigger than Karnataka.
Per capita income: Karnataka has recorded one of the highest per capita incomes in India among the major states. In the last five years per capita income in the state has increased 62 per cent to Rs 3.02 lakh in FY23 from Rs 1.86 lakh in FY18. While the country’s per capita income stood at Rs 1.71 lakh in FY23 registering 48 per cent growth in the same duration. Karnataka’s per capita income is estimated to be Rs 3.32 lakh in at the end of FY24.
Fiscal deficit: The gross fiscal deficit of this south Indian state has increased by 98 per cent to Rs.61,564 crore in FY23 (Budgeted estimates) from Rs 31,101 crore in FY18. In the latest state budget for FY24, the fiscal deficit in Karnataka is expected to be Rs.60,581 crore, which is 2.60 per cent of the GSDP. While India’s fiscal deficit is expected to be 5.9 per cent of the GDP in the same fiscal.
Total Debt: Total outstanding liabilities or total debt in Karnataka has grown by 88 per cent to Rs 5.18 lakh crore in FY23 from Rs 2.46 lakh crore in FY18. In the state budget, the total liabilities for FY24 are estimated to be Rs. 5.65 lakh crore, which is 24.20 per cent of the GSDP.
Inflation: Karnataka has also performed better in fighting inflation in FY23. Consumer price inflation in March stood at 5.58 per cent, which remained below the national average of 5.66 per cent. In Karnataka, inflation stood in the range of a minimum of 4.19 per cent to a maximum of 6.39 per cent in FY23. Inflation in Karnataka always remained lower than India’s national average inflation for each month in FY23.
