Bengaluru, March 25 (NationPress) In reaction to Chief Minister Siddaramaiah's justification of the 2026–27 Budget, the BJP in Karnataka has accused him of fabricating a misleading narrative regarding the state's financial situation.

R. Ashoka, a senior leader of the BJP and the Leader of the Opposition, articulated his concerns, stating that the Chief Minister, who has a history of presenting 17 Budgets and is willing to present more, is ignoring critical differences between capital expenditure and revenue spending.

He pointed out that while borrowing is not inherently problematic, the intention behind the borrowed funds is what truly matters.

Ashoka compared the state’s financial practices with those of the Union government, emphasizing that a large share of Central borrowings goes towards capital expenditure.

He mentioned that the Centre's capital allocation is projected to be around Rs 12.2 lakh crore, which represents approximately 3.1% of GDP and nearly 22–23% of total expenditure, primarily channelled into infrastructure projects like roads and railways, as well as long-term economic development.

In contrast, he highlighted that Karnataka's 2026–27 Budget, with a total outlay of Rs 4.48 lakh crore, designates only Rs 74,682 crore for capital expenditure.

This accounts for about 16-17% of total spending and nearly 2.2–2.5% of the state's Gross State Domestic Product (GSDP).

He also raised alarms about the state's total outstanding debt, which has reached approximately Rs 8.24 lakh crore, nearly 25% of GSDP, with new borrowings of Rs 1.32 lakh crore planned for the current financial year.

Ashoka expressed concern over a revenue deficit of Rs 22,957 crore, suggesting that the state is borrowing to cover regular administrative costs.

This situation, critics argue, implies that a considerable portion of the borrowings is being utilized for routine expenditures rather than for asset creation.

Ashoka asserted that while the Union government prioritizes using borrowed funds for creating productive assets and fostering long-term growth, the state's spending habits reveal a reliance on loans for everyday expenses.

He argued that the issue lies not in the quantity of the borrowing, but in the quality and purpose of the expenditures.

Moreover, Ashoka accused the Chief Minister of selectively quoting senior party leaders to bolster his political narrative, highlighting an instance where Siddaramaiah referenced comments made by veteran BJP leader Murli Manohar Joshi on the Food Security Bill, but took them out of context.

According to Ashoka, Joshi's 2013 remarks, which dubbed the proposed law a “vote security bill,” were made in a specific context concerning the timing of the National Food Security Act introduced by the UPA government shortly before the 2014 general elections.

Ashoka clarified that the statement was intended to question the political motives and timing of the legislation, not to criticize welfare measures aimed at the impoverished.

He also countered the Congress party, noting past comments by Congress leader Rahul Gandhi, who referred to poverty as a “state of mind,” which Ashoka deemed insensitive.

He criticized the Congress's methodology, alleging that the party frequently utilizes the poor as a political instrument during elections, while the BJP's approach to welfare emphasizes empowerment with dignity over electoral tokenism.

The statement urged Siddaramaiah to stop distorting facts and focus on effective governance, claiming that Karnataka is facing administrative hurdles under the existing Congress regime.