BJP, JD(S) slam Karnataka govt for borrowing Rs 63,000 Cr to fund guarantee schemes

Bengaluru (Karnataka) [India], August 20 (ANI): Bharatiya Janata Party and Janata Dal (Secular) on Wednesday slammed the Congress government in Karnataka over borrowings of Rs 63,000 crore during 2023-24 to fund its guarantee schemes as mentioned in the Comptroller and Auditor General's (CAG) report.
The Opposition MLAs claimed that the borrowings increased by 20 per cent as compared to last year.
BJP MLA Bharath Shetty Y told ANI, "The Karnataka government's borrowing has increased by 20 per cent compared to last year, and this shows a financial mismanagement by the Karnataka government and a significant deficit. The government is struggling to pay salaries on time, with three to four months of pending wages for contract labourers across various departments, pushing the state towards bankruptcy. The government should release a white paper to transparently address these issues."
Raising a similar question, BJP leader Gali Janardhana Reddy said, "Already, all the MLAs of the present ruling party headed by Siddaramaiah are worried since no development work has been done... This is really bad, as 20 per cent more compared to last year."
In a sharp attack against Chief Minister Siddaramaiah, BJP MLA CN Ashwath Narayan said that the rise in taxes and revenue has not translated into public welfare.
Narayan said, "The Chief Minister, despite having over 50 years of experience, has not effectively utilised it in the administration of Karnataka. Since coming to power, the government has significantly raised taxes, collecting over 15 per cent more revenue than promised, yet this has not translated into benefits for the people."
Further, he alleged the government of mismanaging funds and borrowing excessively.
"Key areas such as education, healthcare, governance, skilling, and technology adoption are lacking, indicating a failure in various things like prioritising the Human Development Index... The government is mismanaging funds, borrowing excessively, leading to a deterioration in the state's condition. There is a looting at all levels, from treasury to contracts," he said.
JD(S) leader CB Suresh Babu called it a "crisis" and said, "It will be a burden for the state exchequer if the state government borrows 20% yearly. The crisis will increase in the state."
On the contrary, Karnataka Minister KH Muniyappa noted that the funds have been allocated to development projects and welfare schemes.
"Development works for thousands of crores have also been given... Funds have been allocated for various schemes. The Chief Minister presented the 14th budget, and he knows how to balance the finances," Muniyappa said.
Congress' Chief Whip in the Assembly, Ashok Pattan, said, "That is a fact because we are investing that money for the poor, not the rich... Everything will be finalised in a short time, and we will become first in the country."
The row began after the CAG report tabled in the Karnataka Assembly revealed that the state government borrowed nearly Rs 63,000 crore during 2023-24 to fund its guarantee schemes.
The report also noted that capital expenditure on infrastructure fell by Rs 5,229 crore compared to the previous year, with funds being diverted to guarantees.
According to the report, 15 per cent of the borrowings were allocated to the five flagship guarantees, including Rs 16,964 crore for Gruha Lakshmi Scheme, Rs 8,900 crore for Gruha Jyothi Scheme, Rs 7,384 crore for Anna Bhagya, Rs 3,200 crore for Shakti scheme and Rs 88 crore for Yuva Nidhi.
The fiscal deficit has risen from Rs 46,623 crore to Rs 65,522 crore, an increase of Rs 37,000 crore over the net debt. (ANI)