Ashoka Denounces Karnataka Budget for Escalating Debt Crisis
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Bengaluru, March 10 (NationPress) R. Ashoka, the Karnataka Leader of the Opposition, critiqued the State Budget 2026-27 on Tuesday, claiming it has trapped the citizens of Karnataka in a “debt vortex” and has failed to deliver justice to backward classes, Scheduled Castes, and various other societal groups.
During the Assembly budget discussion, Ashoka asserted that the state government is accumulating substantial debt to service prior loans, while showing little advancement in the execution of previous initiatives.
“The fiscal deficit and the total debt levels have surpassed acceptable limits. The Chief Minister has resorted to taking out new loans merely to settle older ones,” he charged.
Ashoka pointed out that the budget has not managed to generate confidence, even among members of the ruling party. “Earlier budgets were more concise and garnered appreciation. This latest budget spans over 170 pages with more than 500 items, yet it has not received any commendation,” he remarked.
He further criticized the dynamics between Chief Minister Siddaramaiah and Deputy Chief Minister D.K. Shivakumar, quipping that the Chief Minister referred to their relationship as akin to “milk and honey”.
“Whether it’s milk and honey or poison will be revealed later. You cannot clap with one hand,” Ashoka asserted.
He also condemned the government's fiscal oversight, indicating that the state’s debt had escalated considerably since the Congress assumed control. He claimed the government has accumulated loans totaling nearly Rs 2.89 lakh crore in just three years.
“If this trend persists, the overall debt could surpass Rs 6 lakh crore,” he warned.
Ashoka further alleged that despite increased borrowing, the government has failed to establish new assets. He stated that loans are being procured, yet no significant irrigation or infrastructure projects have been finalized, signifying a lack of meaningful asset creation in the last three years.
He noted that expenditures have surpassed revenues under the current administration, thereby straining the state's finances.
“During the BJP tenure, expenditures were lower than revenues. However, after Congress took over, deficits began to emerge in the very first year,” he claimed.
Addressing concerns around departmental operations, Ashoka highlighted that a considerable portion of the budget funds allocated previously remained unspent.
“Only about 59 percent of the funds allocated in the last budget have been utilized, leaving the rest untouched,” he noted.
The Opposition leader also accused the government of rerouting funds designated for Scheduled Castes and Scheduled Tribes under the SCSP and TSP schemes to support its flagship guarantee programs.
“Funds intended for Dalits are being redirected to other schemes. This is a far cry from social justice,” he stated.
Ashoka also raised alarms regarding healthcare, education, and urban development issues, claiming that government hospitals are facing medicine shortages and many government schools are nearing closure due to declining enrollment.
“Basic services are facing significant shortages. Hospitals are running low on medicines, and numerous departments are unable to utilize their allocated funds,” he remarked.
He further alleged that citizens are facing increased tax burdens through higher fuel prices, liquor taxes, vehicle taxes, and other fees.
Despite his criticisms of the state's financial management, Ashoka acknowledged that Karnataka has received substantial financial backing from the Union government.
He stated that Karnataka has been granted Rs 63,049 crore from the Centre and has benefited from infrastructure projects such as national highway expansion and railway development.
Even with such support, Ashoka alleged, the state government continues to blame the Centre rather than concentrating on effective governance and fiscal discipline.