Why Karnataka's new government has a job on its hands despite 8.5% growth

Karnataka is grappling with income inequality, an agrarian crisis and child malnutrition even though its economy grew at 8.5%–second-highest among 10 states and union territories in 2017–to a gross domestic product of Rs 9.5 lakh crore ($141 billion) in 2017-18, according to the latest economic survey.

The 2018-19 budget for the state is Rs 2.09 lakh crore ($31 billion), which is 12% more than the budget estimate of Rs 1.86 lakh crore for 2017-18. There has been an increase in the state’s revenue as well. Karnataka’s tax revenue for 2018-19, including goods and services tax (GT) compensation, is estimated to be Rs 1.03 lakh crore ($15 billion), an increase of 13% over the revised estimate for 2017-18.

The economic survey 2017-18 highlights Karnataka’s progress on the per capita income front too. With a per capita income of Rs 142,267 per annum, Karnataka’s citizens are India’s 10th richest, behind Delhi, Haryana, Maharashtra, and Kerala in 2015-16 according to national accounts.

This prosperity, however, has not led to equal distribution of wealth, robust agriculture or good access to public health systems.