Yogesh K Porwar
T
he Chief Minister of Karnataka has responded to the allegations made by opposition leaders,including BJP State President,BY.Vijayendra,former Chief Minister and current MP Basavaraj Bommai,and other opposition leaders,regarding the state’s financial situation.
They have claimed that the state’s economy is declining, that Karnataka is heading towards bankruptcy,and that the financial system has collapsed.
They have also criticized our government’s guarantee schemes and other initiatives aimed at empowering the people.
The reality is that during the BJP’s rule,the state’s economy was pushed to the brink of collapse.Now, while sitting in the opposition, they are speaking as if they are great economists.
Our government is working hard to bring the state’s economy back on track after the mismanagement and chaos caused by the BJP’s irresponsible financial policies. It is unfortunate that the BJP cannot accept or understand this.
Here are some examples of the BJP’s mismanagement:
During the BJP’s rule, they took up projects worth seven times more than the budget allocated.As of March 31, 2023, they left behind unpaid bills worth RS.2,70,695 crore for key departments like Public Works,Minor Irrigation,Water Resources,Urban Development,Rural Development, and Housing.
They also approved projects worth RS.1,66,426 crore under the Chief Minister’s discretionary fund.Can such financial mismanagement,irresponsibility,and corruption be fixed in just a few years?.
Despite the BJP-led central government under Narendra Modi exploiting Karnataka’s resources,the state BJP leaders remained silent.
This is akin to a lamb being skinned alive while it continues to graze, oblivious to its plight.The central government stopped compensating the state for GST losses,causing an annual revenue loss of ₹18,000-20,000 crore.However,they continued collecting taxes from the people.
The Modi government has also done great injustice to Karnataka in tax devolution.
In 2018-19,when the central budget was RS.24.42 lakh crore,Karnataka received RS.35,895 crore as its share.
Now,with the central budget at RS.50.65 lakh crore, Karnataka is expected to receive only RS.51,000 crore.
Compared to 2018,we should have received at least RS. 73,000 crore.
This alone causes an annual loss of RS.22,000 crore to the state.
The central government collects over RS.4.5 lakh crore in taxes from Karnataka but gives back only a fraction. Has the BJP ever spoken about this?.
Due to the poor implementation of GST since 2017, the central government’s refusal to share cess and surcharges as recommended by the 15th Finance Commission,and the failure to release RS. 5,300 crore for the Bhadra Upper Bank project,Karnataka has lost over RS. 2.1 lakh crore.The BJP has never spoken about this.
Despite all this,Karnataka’s economy remains strong. Here are some key points:
Our average budget growth over the last two years is 18.3%, compared to just 5% during the BJP’s four-year rule.
The state’s own tax revenue growth is 15%, compared to 11% during the BJP’s tenure.
We are providing over RS.90,000 crore annually directly to the people through DBT and subsidies, including RS. 10,400 crore for senior citizens, disabled persons, widows, and others.
The central government contributes only RS. 450 crore, the same as during Manmohan Singh’s tenure. What has the BJP done for Karnataka?.
Our fiscal discipline is intact.The fiscal deficit is below 3%, and our total liabilities are within 25% of GSDP. During the BJP’s rule, these were out of control.
Our capital expenditure is better than neighboring progressive states. Karnataka is spending 15.01% of its budget on capital expenditure, compared to Maharashtra (12.74%), Tamil Nadu (10.58%), and Telangana (11.58%).
Despite the BJP’s conspiracies and betrayals, Karnataka continues to stand strong.We are providing over RS. 52,000 crore for guarantee schemes and supporting farmers in distress.
We are fulfilling our promises to Kalyan Karnataka and providing grants to all parts of the state, including Bengaluru.
While Bommai,as Water Resources Minister, failed to release funds for the Krishna Upper Bank project, our government has decided to complete the land acquisition process.
Our government has implemented the 7th Pay Commission report, increasing salaries by 27.5%. We are paying an additional RS.16,000 crore in salaries this year.
Our strong economy and good governance have attracted investments worth RS.10.27 lakh crore at the recent Invest Karnataka event.Despite this, the BJP continues to criticize the state’s financial situation for political reasons.
Have Bommai and the BJP even read the central budget properly?The 2024-25 budget estimate was revised down from RS.48.21 lakh crore to RS. 47.16 lakh crore, a reduction of RS. 1,04,025 crore.
Capital expenditure was cut by RS. 92,682 crore. Compared to the 2024-25 estimate, the 2025-26 budget shows only a 5.07% increase.
Adjusted for inflation, this year’s budget shows negative growth. Why are the BJP’s self-proclaimed economic experts hiding this truth?
Vijayendra, who speaks about debt, should know that the central government’s debt has skyrocketed under Modi.
From RS. 53.11 lakh crore in 2013-14, it is expected to reach RS. 200.16 lakh crore by March 2026, as announced by Nirmala Sitharaman.
This is an increase of over RS.147 lakh crore in 11 years. Why has such a huge debt been accumulated?
Modi’s economic policies have also destabilized state finances. In March 2014, all states’ combined debt was RS. 25 lakh crore.
Now, it has exceeded RS. 95 lakh crore, an increase of RS. 70 lakh crore in 10 years. States are suffering due to the central government’s policies, and the central economy is also weakening.
Once again, I want to emphasize that Karnataka’s economy is strong enough to withstand the BJP’s betrayals.
We will continue to fight for our rights against the injustices of the BJP-led central government under Modi. We stand by our words and our people.
I urge the opposition to stop spreading lies and join hands with the government in working for the welfare of Karnataka’s people.
