No Money For Public But Hike For Netas: Republic Kannada Access Karnataka Govt Draft Bill Proposing Salary Increase

Bengaluru: The Karnataka government, which has repeatedly claimed to lack funds for public welfare schemes, has now proposed a significant salary hike for ministers, MLAs, and top officials. The draft Karnataka Legislature Salaries, Pensions, and Allowances (Amendment) Bill, 2025, accessed by Republic Kannada, reveals how Siddaramaiah’s government is planning substantial increases in the salaries and allowances of lawmakers.

What’s Changing?

The bill proposed doubling the salaries of MLAs and ministers, with additional hikes in house rent, travel, and medical allowances.

Key Highlights of The Proposed Hikes:

• Chief Minister's salary: ₹75,000 → ₹1,50,000
• Ministers' salary: ₹60,000 → ₹1,25,000
• House Rent Allowance (HRA) for Ministers: ₹1,20,000 → ₹2,00,000
• MLA/MLC salary: ₹40,000 → ₹80,000
• Pension for ex-legislators: ₹50,000 → ₹75,000
• Travel allowance (with a companion): ₹1,00,000 → ₹2,00,000
• Fixed medical allowance: ₹2,500 → ₹10,000
• Constituency allowance: ₹60,000 → ₹1,10,000

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Govt Cites Fund Shortage, But Approves Hikes

The move came after the government frequently cited financial constraints for delaying payments of schemes like farmer subsidies, pension disbursements, and school development programs. 
​In February 2022, the Karnataka legislature approved significant salary increases for state officials, despite reduced revenue due to the COVID-19 pandemic. The Chief Minister's monthly salary rose from ₹50,000 to ₹75,000, and ministers' salaries increased from ₹40,000 to ₹60,000. Additionally, allowances such as house rent and travel were substantially raised, resulting in an annual additional expenditure of ₹25.40 crore for these hikes. ​

7th Pay Commission Impact

More recently, in July 2024, the Karnataka government implemented the 7th State Pay Commission's recommendations, leading to a 58.5% increase in basic salaries and pensions for government employees. This revision raised the minimum basic pay from ₹17,000 to ₹27,000 and the maximum from ₹1,50,600 to ₹2,41,200. The minimum pension was also increased from ₹8,500 to ₹13,500, with the maximum pension rising from ₹75,300 to ₹1,20,600. This adjustment is expected to cost the state exchequer an additional ₹20,208 crore annually. ​

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Revenue Deficit & Opposition Backlash

While these salary and allowance increases have been implemented, specific instances where the Karnataka government explicitly stated a lack of funds for public spending were not found in the provided sources. However, it's noted that the government has been managing financial challenges, including a projected revenue deficit of ₹27,353 crore for the 2024-25 fiscal year, relying on borrowings to sustain various programs.

The bill, once passed, would further strain the state's budget, with taxpayers ultimately footing the bill. The opposition demanded a rollback, stating that the government must first address public grievances before approving salary hikes for politicians.