Karnataka's Chief Minister, Siddaramaiah, has firmly dismissed the opposition's claims proclaiming the state to be in an economic crisis. Leaders from the BJP, including state president BY Vijayendra and former Chief Minister Basavaraj Bommai, alleged that Karnataka is on the brink of bankruptcy and that the financial system has collapsed. They critiqued the government's welfare schemes as well. Siddaramaiah retorted by stating that the state's economy was on the verge of ruin under BJP's rule, and now from the opposition bench, they claim to be financial experts.
CM Siddaramaiah affirmed that his government is diligently working to correct the fiscal mismanagement left by BJP's irresponsible policies. Highlighting inconsistencies from the former administration, he pointed out that by March 31, 2023, the BJP government had left pending liabilities amounting to 2,70,695 crores in various departments such as public works, water resources, and housing. Additionally, projects worth 1,66,426 crores were sanctioned from the Chief Minister's discretionary fund without proper financial planning.
Accusations of Financial Discrimination by the Central Government
CM Siddaramaiah has accused the BJP-led central government of withholding Karnataka's financial resources. He indicated that the state was entitled to 73,000 crores from tax revenue but only received 51,000 crores. Besides, the central government ceased GST compensation, causing an annual loss of 18,000-20,000 crores to the state.
Karnataka's Economy Remains Stable
Despite these challenges, the Chief Minister asserted that Karnataka's economy remains stable. He noted that the state's budget growth rate averaged 18.3% over the last two years, compared to only 5% during BJP's four-year regime. He also mentioned that tax revenue growth increased under his administration, with the state spending 90,000 crores annually on direct benefit transfers (DBT) and subsidy schemes.
Allegations of Increasing Public Debt by the Central Government
Siddaramaiah questioned the fiscal policies of the Modi government, noting that the central debt was 53.11 lakh crores in 2013-14 and is projected to reach 200.16 lakh crores by March 2026. He stated that this debt increase has weakened the financial standing of all states, with collective state debt rising from 25 lakh crores in 2014 to over 95 lakh crores now.
Better Capital Expenditure Policy in Karnataka
The Chief Minister defended his government's spending priorities by stating that Karnataka allocates 15.01% of its budget to capital expenditure, more than Maharashtra, Tamil Nadu, and Telangana. In spite of BJP's conspiracies and deceit, Karnataka remains strong. Siddaramaiah urged the opposition to refrain from making false accusations and to instead cooperate in the state's development.
