Bengaluru, March 31 (NationPress) In the midst of the by-election campaign, Karnataka's Chief Minister Siddaramaiah firmly dismissed the demand made by Bharatiya Janata Party (BJP) State President and Member of Legislative Assembly B. Y. Vijayendra for a white paper on the financial status of Karnataka. He described the request as indicative of a "deficit in economic comprehension, administrative expertise, and political despair."

In an extensive press release, Siddaramaiah emphasized that the State Budget presented last month acts as a "clear and honest overview" of the government's financial position.

He pointed out that the Budget had undergone debate and received approval from both Houses of the Legislature, where questions from the Opposition were thoroughly addressed.

Furthermore, he expressed his willingness to clarify any lingering doubts and participate in an open discussion.

Rejecting claims of the State being financially bankrupt, the Chief Minister stated that no department was struggling to meet salary obligations and stressed that both the economic and political environments in Karnataka were stable.

Siddaramaiah accused BJP leaders of voicing such allegations out of "desperation and envy" due to their inability to effectively challenge the government politically.

He highlighted significant economic indicators, revealing that the State's Budget for 2025-26 is set at Rs 4,48,004 crore, reflecting a 9.4% increase compared to the prior year, in contrast to the Union Government's 5.6% growth.

Additionally, he mentioned that Karnataka's Gross State Domestic Product (GSDP) growth rate of 8.1% outpaces the national Gross Domestic Product (GDP) growth of 7.4%, showcasing robust economic performance.

On the matter of fiscal discipline, he disclosed that the State's total liabilities are at 24.94% of GSDP, remaining within the 25% limit set by the Fiscal Responsibility Act, whereas the Centre's liabilities have escalated to 55.6% of GDP, surpassing established norms.

Moreover, Karnataka's fiscal deficit remains below the 3% threshold, while the Centre's deficit is recorded at 4.3%.

Siddaramaiah also criticized the Union Government for exhibiting a "stepmotherly treatment" towards Karnataka regarding tax devolution, Goods and Services Tax (GST) compensation, and centrally sponsored programs.

He pointed out that Karnataka's share in central taxes has been diminished under consecutive Finance Commissions, resulting in considerable revenue losses.

Furthermore, he claimed that since the introduction of GST, Karnataka has incurred a cumulative loss exceeding Rs 2 lakh crore due to a reduced tax share, lack of compensation, and policy alterations.

He added that the cessation of GST compensation since 2023 has led to revenue deficits, further compounded by revisions in GST rates that have affected collections.

In his critique of the Centre's borrowing practices, he noted a sharp rise in national debt under PM Modi, alleging that the country is being steered into a "debt trap."

Siddaramaiah also directed criticism at the former BJP administration in Karnataka, stating that despite substantial borrowing, it failed to provide sufficient infrastructure or welfare initiatives, leaving behind a debt burden exceeding Rs 5.53 lakh crore.

He urged Vijayendra to "conduct some research" and insisted that meaningful discussions should be grounded in factual evidence rather than political posturing.