Karnataka has announced a one-time input subsidy of ₹2,500 for every farmer in drought-hit taluks as the state government seeks central assistance and a “national disaster” declaration for the drought affecting much of the state.
Deputy Chief Minister G Parameshwara made the announcement in the legislative Assembly, saying crop losses could cross ₹40,000 crore. The assistance is expected to benefit between 45 lakh and 50 lakh farmers and cost the state exchequer about ₹1,250 crore.
As many as 217 of Karnataka’s 240 taluks are facing a rainfall deficit, according to the government. The subsidy will be subject to grants from the National Disaster Response Fund, while the state has submitted a memorandum to the Centre seeking financial assistance under existing disaster-relief norms.
Parameshwara said a delegation from Karnataka would soon meet Prime Minister Narendra Modi to seek drought relief measures. A central team is also expected to visit the state to assess the situation.
The government has ordered on-ground drought assessments in 29 taluks, including Indi and Chadachan. Eleven more taluks have been identified for assessment, taking the total number of taluks under study to 217, according to the deputy chief minister.
The drought assessment process has also triggered political disagreement. Congress MLA Yashwanthraygoud V Patil resigned on Wednesday in protest after his constituency was not included in the list of affected taluks. Parameshwara rejected allegations that taluks were declared drought-hit under political pressure.
BJP leader R Ashoka criticised the proposed subsidy, describing it as inadequate. He said ₹2,500 was equivalent to only two or three days of wages and argued that a farmer required at least ₹10,000 for tilling and sowing operations.
The relief announcement comes amid debate over Karnataka’s finances and the government’s ability to fund new commitments. Parameshwara said a finance department warning against new projects should not be interpreted as evidence that the state was bankrupt, arguing that the caution was intended to enforce fiscal discipline.
He cited a projected fiscal deficit of 2.95% for 2026-27, against the 3% ceiling permitted under the Fiscal Responsibility and Budget Management framework. Karnataka’s revenue deficit stands at ₹22,957 crore, while cumulative liabilities have risen to 24.94% of gross state domestic product, just below the 25% level.
The next steps are the completion of the state’s drought assessment, the expected visit by the central team and Karnataka’s meeting with the Prime Minister. The proposed farmer assistance will remain linked to the availability of grants under the National Disaster Response Fund.
