Bengaluru, Jan 27 (NationPress) Karnataka's Leader of the Opposition (LoP) R. Ashoka stated on Monday that residents are compelled to seek assistance from microfinance institutions due to the state government's inability to provide loans and its reduction of grants.

"The actions of the Congress government have forced individuals to depend on microfinance loans, which has tragically resulted in suicides. The Karnataka government is failing to offer loans and has made cuts to grants across various departments, leaving people with no choice but to approach microfinance companies," he expressed.

During a press briefing at Vidhana Soudha in Bengaluru, Ashoka remarked, "Had the government ensured loan availability, lives wouldn’t have been lost to such desperation."

Ashoka noted that the previous BJP administration allocated Rs 15,383 crore to agriculture, horticulture, rural development, and cooperative sectors, whereas the Congress government allocated Rs 14,768 crore, resulting in a deficit of Rs 614 crore.

He accused the Congress regime of enabling microfinance institutions to take advantage of the impoverished populace.

"In microfinance setups, groups of 10 individuals are formed, with each receiving Rs 50,000 as a loan. They act as guarantors for one another, and exorbitant interest payments are required monthly. For a Rs 50,000 loan, a repayment of Rs 67,000 is mandated. If payments are delayed by two months, harassers will visit homes to create distress," Ashoka explained.

He further mentioned that in numerous villages, residents have abandoned their homes due to pressure from microfinance entities. "The failure of the Congress administration to provide loans through corporations has compelled individuals to seek help from microfinance institutions," he reiterated.

Ashoka also condemned the government by comparing funding allocations: For the Ganga Kalyana Scheme under the B.R. Ambedkar Development Corporation, the BJP allocated Rs 60 crore in 2022-23, while Congress designated Rs 40 crore for 2024-25.

For the corporation's self-employment initiative, the BJP allocated Rs 100 crore, but Congress provided only Rs 45 crore. In the case of the Tanda Development Corporation's self-employment scheme, the BJP's allocation was Rs 110 crore, while Congress allocated Rs 60 crore, according to Ashoka.

Furthermore, the Karnataka Adi Jambhava Development Corporation received Rs 100 crore under the BJP, compared to only Rs 50 crore under Congress.

Ashoka also alleged corruption within the Valmiki Development Corporation, where funds have been frozen. Of the Rs 1,700 crore needed by various corporations, only Rs 643 crore has been provided, leaving a substantial shortfall of Rs 1,055 crore. This deficit, he claimed, has driven people to microfinance institutions.

Ashoka criticized the Congress government for slashing allocations across crucial sectors, asserting that the BJP allocated Rs 7,288 crore to agriculture in 2022-23, while Congress provided only Rs 5,035 crore, leading to a shortfall of Rs 2,253 crore.

He highlighted that the BJP allocated Rs 1,374 crore to horticulture, compared to Rs 1,207 crore by Congress.

Ashoka also took aim at Chief Minister Siddaramaiah, stating, "Like shutting the barn door after the horse has escaped, Siddaramaiah is now attempting to enact new laws. Notices are being issued, and people are being evicted from their homes without prior notice. Even the police are complicit, offering no safety to the victims."

He claimed that Siddaramaiah's promise to waive loans has resulted in losses for DCC banks, as borrowers are now waiting for waivers instead of making repayments.

"Prime Minister Narendra Modi had cautioned that Congress would undermine people's livelihoods, and that is now coming to fruition. If Congress's 'Griha Laxmi' scheme genuinely supports women, why are they still resorting to microfinance?" Ashoka questioned.

He further asked why the Congress government is soliciting funds from the central government for Bengaluru and irrigation projects. "If Prime Minister Narendra Modi is meant to handle everything, what is Congress's role here?" he queried.

Ashoka expressed support for the implementation of a Uniform Civil Code, stating it would foster equality. "In other nations, all citizens are treated equally. Likewise, in India, the same laws that apply to Hindus should also apply to individuals of all faiths," he concluded.