Kumaraswamy Urges K'taka Government to Clarify Borrowing Practices
Synopsis
On March 7, Union Minister H.D. Kumaraswamy raised significant concerns regarding the Karnataka government's financial management, particularly in relation to its extensive borrowing. He cautioned against mere statistical representation in the state Budget, emphasizing the need for responsible financial practices.
Key Takeaways
Kumaraswamy questions Karnataka's borrowing practices.
State debt has reached Rs 8.24 lakh crore.
Concerns raised about lack of capital expenditure.
Gruha Lakshmi assistance scheme discussed.
Calls for caution in decision-making.
Mysuru (Karnataka), March 7 (NationPress) Union Minister for Heavy Industries and Steel H.D. Kumaraswamy voiced serious concerns regarding the state Budget during an event on Saturday, questioning the manner in which the Karnataka government is managing its borrowed funds.
According to Kumaraswamy, the Congress-led administration has incurred new borrowings of Rs 1.32 lakh crore, which brings the state's overall debt to a staggering Rs 8.24 lakh crore.
While addressing attendees at the 397th Aradhana of Sri Guru Budiswamiji, the 63rd Pramathara Pooja, and the opening of a new facility at Sri Ukkinakante Mutt located in Madahalli village of Hunsur taluk in Mysuru district, he emphasized that simply presenting figures in the Budget document does not suffice.
“What is the benefit of showcasing mere statistics? The government must address the aspirations of its citizens,” he remarked, urging the state to proceed with caution in its decision-making.
Kumaraswamy cautioned the Chief Minister about potential challenges ahead. “The upcoming days could prove to be tough. It’s essential to remember this and make judicious choices,” he added.
He directly addressed Karnataka's Women and Child Development Minister, Lakshmi Hebbalkar, present at the event: “I have no objections to the Rs 2,000 Gruha Lakshmi assistance being provided to women through your department, nor do I criticize the initiative.”
He indicated that the government has likely expended approximately Rs 70,000 crore to Rs 75,000 crore on the scheme over the last three years.
“But where are these funds sourced from?” he inquired.
Kumaraswamy pointed out the alarming rise in the state's total debt, which has now reached Rs 8.24 lakh crore, with plans to borrow an additional Rs 1.32 lakh crore this year.
“If such massive amounts are being borrowed, where exactly is that money going? There appears to be a lack of capital expenditure and no creation of government assets. What is the purpose of these loans?” he questioned.
He urged Minister Hebbalkar to provide guidance to the Chief Minister, cautioning that the state’s financial situation could worsen if not addressed promptly.
Kumaraswamy also reminisced about his tenure as Chief Minister, where he promised to waive farmers’ debts. “Many doubted my ability to do this due to the lack of funds, yet I successfully implemented the loan waiver without incurring additional debt,” he stated.
Notable seers including Shivarathri Deshikendra Mahaswamiji of Suttur Mutt, Siddalinga Mahaswamiji of Siddaganga Mutt, and ambasadashiva Swamiji of Ukkinakante Mutt attended the event, alongside prominent figures such as Women and Child Development Minister Lakshmi Hebbalkar, former minister S.R. Mahesh, MLA G.D. Harish Gowda, former MLA Ashwin Kumar, MLC C.N. Manjegowda, and various other distinguished leaders.
Point of View
Union Minister H.D. Kumaraswamy has spotlighted the alarming levels of state borrowing and raised questions about the efficacy of current government spending. His remarks call for greater accountability and transparency in fiscal management, highlighting the need for the government to directly address the aspirations of its citizens.
NationPress
28 Jun 2026
Frequently Asked Questions
What is the current total debt of Karnataka?
The current total debt of Karnataka stands at Rs 8.24 lakh crore.
How much is the Karnataka government planning to borrow this year?
The Karnataka government plans to borrow an additional Rs 1.32 lakh crore this year.
What concerns did H.D. Kumaraswamy raise about the state Budget?
Kumaraswamy expressed concerns over the government's use of borrowed funds and the lack of capital expenditure.
What is the Gruha Lakshmi assistance scheme?
The Gruha Lakshmi assistance scheme provides Rs 2,000 to women in Karnataka through the state's Women and Child Development department.
What did Kumaraswamy say about his previous loan waiver promise?
He recalled successfully implementing a loan waiver for farmers during his tenure, despite skepticism about funding.
