It is expected that the five guarantee schemes would not only lead to distributive justice but also boost the economic growth of the State in the short run by increasing consumption, according to the Mid Year Review of State finances 2023-24 that was tabled in the Assembly on December 14.
However, with necessary structural reforms and enhanced Ease of Doing Business coupled with higher capital expenditure, the State is expected to maintain a high growth trajectory in the long run, the report observes.
Karnataka’s model of development which includes guarantee schemes is positively influencing the State economy and is contributing to the increase in the GSDP. The guarantee schemes aim to support the underprivileged with monetary support, increasing their purchasing power and boosting economic activity that will in-turn lead to economic growth, the MYR states.
