BENGALURU: The Karnataka government has raised the ceiling for purchasing official vehicles for ministers and Members of Parliament (MPs) from Rs 26 lakh to Rs 31 lakh, including GST, as the state seeks substantial financial assistance from the Centre to address crop losses caused by severe drought.
The revised limit was notified through an order issued by the Department of Personnel and Administrative Reforms (DPAR), State Protocol. The order allows the purchase of new vehicles within the enhanced price ceiling, increasing the amount available for government-provided transport for elected representatives.
The previous revision was made in 2022, when the ceiling was increased from Rs 23 lakh to Rs 26 lakh. The latest enhancement adds another Rs 5 lakh and is expected to give ministers and MPs greater flexibility in choosing vehicles within the prescribed limit.
Karnataka is among the few states that provide vehicle facilities to MPs in addition to ministers. While ministers are entitled to several official amenities, including government-provided transport, the state’s administrative arrangements also extend such facilities to MPs.
Sources in DPAR said the earlier ceiling of Rs 26 lakh had often proved insufficient for representatives seeking higher-end vehicles. In several cases, ministers and MPs opted for vehicles priced above the prescribed limit, requiring the proposals to be sent to the Finance Department for approval. The revised ceiling is expected to reduce the need for such separate approvals when the selected vehicle falls within the new limit.
A senior minister, speaking on condition of anonymity, defended the increase, citing rising vehicle prices. The minister said the enhancement was not an unprecedented decision and argued that the purchase limit needed to reflect changing market prices.
The government will bear the entire cost of purchasing the vehicles, according to officials familiar with the arrangement. The vehicles remain government property and are not transferred to the personal ownership of the ministers or MPs who use them.
Officials said no specific restriction requires the vehicles to be used exclusively for official purposes. The existing arrangement also allows eligible representatives to seek replacement vehicles once their current cars meet the prescribed age or usage criteria.
According to a source, a vehicle that is three years old or has travelled one lakh kilometres can qualify for replacement, subject to the applicable procedure. The source emphasised that the government retains ownership, even though the vehicles are allotted for use by elected representatives.
The decision, however, comes amid mounting concerns over the state’s drought situation and the financial burden on farmers. The Karnataka government estimates that severe drought conditions have caused losses of around Rs 46,000 crore across 177 taluks.
The state has been seeking assistance from the Centre to provide relief to farmers affected by crop damage and other drought-related hardships. Deputy Chief Minister G. Parameshwara had earlier said the government was seeking approximately Rs 10,000 crore in compensation from the Centre.
The demand for central assistance comes as farmers in drought-hit regions face crop losses and uncertainty over their livelihoods. The state government’s estimate of losses across 177 taluks underlines the scale of the challenge and the need for financial support to address the impact on the agricultural sector.
The increase in the vehicle purchase ceiling is therefore likely to draw attention to the government’s spending priorities, particularly as it pursues central funds for drought relief. The two decisions concern different areas of administration, but their timing places the vehicle expenditure measure alongside the state’s demand for assistance to deal with the agricultural crisis.
The revised order sets the new maximum purchase price at Rs 31 lakh, inclusive of GST, for new vehicles provided under the scheme. The government has not, in the information available, specified how many vehicles are likely to be purchased under the enhanced ceiling or the total additional expenditure the revision may involve.
With the latest change, the vehicle purchase limit for ministers and MPs has risen by Rs 8 lakh since 2022, when it stood at Rs 23 lakh. The financial implications will depend on how many eligible representatives seek new vehicles and which models they choose within the revised limit.
