Union Minister Critiques Karnataka Budget for Rising Debt and Minority Focus
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Synopsis
On March 8, Union Minister Pralhad Joshi criticized Karnataka's state Budget presented by CM Siddaramaiah, claiming it has increased the state's debt to nearly Rs 8 lakh crore. He argued that the Budget prioritizes minority appeasement over balanced development, highlighting issues in economic growth, revenue deficits, and infrastructure neglect.
Key Takeaways
- Karnataka's debt approaches Rs 8 lakh crore.
- The Budget emphasizes minority appeasement.
- Revenue deficit stands at Rs 19,262 crore.
- Only 14% allocated to agriculture.
- Concerns over fiscal deficit exceeding 3%.
Bengaluru, March 8 (NationPress) Union Minister for Food, Public Distribution and Consumer Affairs, Pralhad Joshi, has voiced his concerns regarding the state Budget introduced by Karnataka Chief Minister Siddaramaiah. He claimed that it has escalated the state's debt to nearly Rs 8 lakh crore and is primarily aimed at appeasing minorities.
In a media briefing in Bengaluru on Friday, Union Minister Joshi stated that while CM Siddaramaiah unveiled a Rs 4.09 lakh crore Budget, it lacks any significant direction.
"A Budget should promote the welfare of all demographics and ensure equitable development throughout regions. However, this Budget appears solely focused on appeasement," he expressed.
Joshi accused the Chief Minister of not delivering a Budget that guarantees balanced growth.
"Karnataka, previously in a strong financial position, is now ensnared in a debt trap. The state's debt has surged from Rs 24,974 crore to Rs 26,474 crore," he alleged.
According to Joshi, the state Budget has a revenue deficit of Rs 19,262 crore and a financial burden of Rs 7.64 lakh crore.
With the Gross State Domestic Product (GSDP) at 24.91 per cent, he warned that Karnataka is on the verge of exceeding the 25 per cent fiscal deficit cap set by the Fiscal Responsibility and Budget Management (FRBM) Act.
Joshi critiqued the state Budget for lacking any tangible plans to stimulate Karnataka's economic progress.
"The Chief Minister relies heavily on the Central government for support instead of concentrating on the state's overall development. The Budget utterly fails to establish robust financial foundations for Karnataka's advancement," he stated.
He noted that Karnataka's total debt is approaching Rs 8 lakh crore, which represents 23 per cent of the state's GDP, a situation he described as alarming.
He mentioned that revenue expenditure totals Rs 3,11,400 crore, while capital expenditure is Rs 76,400 crore, with insufficient fiscal discipline to manage the deficit.
Joshi also condemned the state Budget for ignoring infrastructure development, labeling it a significant drawback for the state's economic advancement.
"Only 14 per cent of the Budget is allocated to agriculture and rural development, 10 per cent to education, and a mere 5 per cent to healthcare. This Budget fails to meet the requirements of the general populace," he asserted.
"A state's infrastructure is vital for attracting investments. Nevertheless, in his 16th budget, CM Siddaramaiah has completely overlooked this area, rendering the state Budget exceedingly disappointing," he concluded.
On social media platform X, Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, remarked, "Favouritism for a select few and neglect for the majority! This epitomizes the Congress-led Karnataka government's budget -- appeasement over development."
Former Chief Minister and BJP MP Basavaraj Bommai also criticized the 2025-26 state Budget presented by CM Siddaramaiah, asserting that it lacks strategies for economic reform and empowerment.
He deemed it an anti-people and disappointing Budget that imposes financial strain on the public.
In a press release on Friday, Bommai pointed out a considerable gap between last year's Budget commitments and actual performance.
While last year's Budget anticipated a total revenue of Rs 3,68,674 crore, the current Budget estimates it at Rs 3,58,657 crore -- indicating a shortfall of Rs 10,000 crore, he noted.
Similarly, the total expenditure was expected to be Rs 3,71,383 crore last year but has now been revised to Rs 3,65,865 crore, with a decline in capital expenditure as well, which hampers the state's growth rate for 2024-25, he remarked.
Bommai stated that the state Budget indicates a fiscal deficit of 2.95 per cent, but in reality, it will surpass 3 per cent of the state's GSDP.
"The numbers were merely manipulated to appear favorable. Furthermore, the state's total debt has now reached Rs 7,64,655 crore, which is almost 25 per cent of the GSDP, suggesting an imminent financial crisis," he added.
The former Chief Minister also criticized the reduction in funding for education (by 2 per cent) and women and child development (by 1 per cent).
He expressed regret that no dedicated funds were allocated for irrigation, rural development, and agriculture, dubbing it an anti-farmer Budget.
Condemning the state Budget for neglecting regional disparities, Bommai asserted that the Rs 5,000 crore allocated to the KKRDB (Kittur Karnataka Region Development Board) was insufficient, especially since last year's allocated funds were not fully utilized.
Additionally, the state government has not announced any special financial assistance for the development of Kittur Karnataka, which he called a major letdown for the region's populace, the BJP leader stated.
Bommai criticized the state Budget for failing to tackle regional disparities in north Karnataka, claiming it predominantly caters to the Bengaluru-Mysuru area.
Labeling the budget as anti-people and anti-development, he remarked that no new initiatives have been introduced to alleviate regional inequalities.
"Last year, Rs 5,000 crore was allocated for Kalyana Karnataka, and the same amount has been set aside this year, but the funds remain unspent. Meanwhile, Kittur Karnataka has received no allocation. This Budget is entirely focused on the Bengaluru-Mysuru region," he charged.
