Karnataka ranks #16 nationally in the State of Governance Report 2024, demonstrating a mix of strengths and areas requiring improvement. The state has made notable progress in seven key sectors, with 15 well-performing projects, including two highly impactful and three impactful initiatives, showcasing its commitment to targeted governance interventions.
The state highlights a fluctuating ranking trend, reflecting varying performance over the years, with peaks at 8th place in 2015 and 2019, followed by declines, notably 16th in 2021 and 2024. Despite intermittent improvements, sustained progress remains elusive, reflecting evolving challenges and shifting competitive dynamics.
In 2024, Karnataka saw significant improvements across key governance sectors. It can be inferred Geology & Mining secured the top national rank, rising from 2nd in 2023. Revenue Governance advanced to 2nd from 4th, reflecting enhanced fiscal management. District Governance improved notably, moving from 12th to 9th, showcasing strengthened administrative efficiency. Additionally, Health made a strong comeback, securing 5th place underscoring renewed focus on public healthcare initiatives and service delivery.
Transport recorded the most significant increase, rising from 22.6% in 2023 to 40% in 2024, reflecting major infrastructure improvements. Revenue also grew significantly, jumping from 12.9% in 2023 to 26.7% in 2024, indicating stronger financial governance. Urban Development and Housing, both at 6.7% in 2024, emerged as priority areas. Health, which stood at 12.8% in 2022, declined to 6.7% in 2023 and remained stable in 2024. These shifts highlight Karnataka’s evolving governance focus and investment strategies.
However, Karnataka faces significant fiscal challenges. The NITI Aayog Fiscal Health Index 2025 categorises the state as aspirational in Debt Sustainability, pointing to concerns over rising liabilities and fiscal management inefficiencies.
The state’s governance model is reinforced by high-impact projects, such as Kaveri 2.0 for digital property registration, the Pourakarmikas Welfare Programme for sanitation workers and Sarige Sanjeevini for transport worker healthcare, which have enhanced service efficiency, digital transformation and social security. Additionally, community-driven Eco-Tourism and Occupational Health & Safety Initiatives highlight Karnataka’s commitment to sustainability and workforce welfare.
State's Performance in Different Sectors in Three Years
| Sector | 2024 | 2023 | 2022 |
|---|---|---|---|
| Urban Development | 1 | ||
| Geology & Mining | 1 | 2 | |
| Transport | 2 | 1 | 5 |
| Revenue | 2 | 4 | 3 |
| Housing | 2 | ||
| Health | 5 | 2 |
