Bengaluru, Aug 20 (NationPress) Union Minister for Food, Public Distribution and Civil Supplies Pralhad Joshi claimed on Wednesday that the Congress-led administration in Karnataka has significantly impacted the state's finances through its five unscientific guarantee schemes.

While addressing reporters in Delhi, Joshi highlighted, "The Comptroller and Auditor General's (CAG) report presented in the state assembly has unveiled this situation. The report indicates that the five unscientific guarantee schemes instituted by the Congress have consumed nearly 15 percent of the state's revenue expenditure."

The CAG report reveals that Karnataka, previously recognized as a revenue-surplus state, is now facing a revenue shortfall attributed to these guarantees, which has resulted in financial instability. Joshi expressed that it would take several years for the state's economy to recover its stability.

He recalled that during the fiscal year 2022-23, Karnataka was a revenue-surplus state. However, it has now transitioned into a deficit state, leading to notable stagnation in development.

Joshi further pointed out that in the 2023-24 fiscal year, the fiscal deficit surged from Rs 46,623 crore to Rs 65,522 crore, alongside a revenue shortfall of Rs 9,271 crore.

The Union Minister accused the Congress government of exacerbating Karnataka's debt burden, which has increased by nearly Rs 63,000 crore. He stated that this has not only decreased capital investment but also obstructed developmental projects.

Additionally, Joshi criticized the government for making life more expensive for the public by raising the prices of essentials such as diesel, milk, electricity, metro, and BMTC bus fares.

The CAG report has disclosed that the five guarantee schemes implemented by the Karnataka government accounted for 15 percent of Revenue Expenditure for the year 2023-24.

It further emphasized that to fund these guarantees, the Congress-led government has secured a loan of Rs 37,000 crore more than the previous year while reducing capital expenditure.

This report was presented in the Legislative Assembly on Tuesday, with details emerging on Wednesday.

The CAG stated: "The implementation of these schemes led to a growth in expenditure of 12.54 percent from the previous year, contributing to a Revenue Deficit of Rs 9,271 crore. As a result, the fiscal deficit of the state also escalated from Rs 46,623 crore in 2022-23 to Rs 65,522 crore in 2023-24."