Chief Minister Siddaramaiah and Leader of Opposition in the Legislative Assembly R. Ashok have been engaged in an argument on the financial position of Karnataka, with the latter citing ‘increasing debt burden’ and the former defending his government’s perspective on revenue generation and spending.
On April 4, Mr. Ashok had posted on his social media handle: “The debt is increasing, the size of budget is increasing, but why is that the capital expenditure not increasing at the same rate? Where is the debt money going? While the budget size is expanding, where is the additional money going?” He had targeted the government for not focusing on capital expenditure and claimed that it was a ‘contrast’ to the approach of Prime Minister Narendra Modi, which he said is ‘focusing on building generation infrastructure and enormously spending on capex’.
In response, the Chief Minister said, “Your concern regarding the State’s debt is noted. However, it is essential to highlight that our administration has diligently ensured our debt levels remain compliant with the FRBM Act. Despite projections suggesting a potential increase in debt to over ₹1 lakh crore for the upcoming financial year, we remain within the permissible 25% of the State GSDP threshold.
