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.
“Moreover, our fiscal deficit is strictly maintained below 3% of the GSDP, underscoring our commitment to fiscal responsibility while simultaneously empowering every citizen through our budgetary allocations.”
Emphasising the importance of the five guarantee schemes ushered in by his government, he said, “It’s noteworthy that our budget has significantly impacted over 1.5 crore families across the State, with more than 1.22 crore women benefiting from the Gruha Lakshmi initiative. The question isn’t whether we should have taken these steps, but how we could afford not to.”
He sought to contrast the State’s schemes with that of the Union government. Under the leadership of Prime Minister Narendra Modi, India’s debt burden has increased by over ₹128.67 lakh crore from ₹55 lakh crore to ₹183.67 lakh crore since 2014. “This staggering figure translates to an additional debt of approximately ₹92,000 per Indian, primarily attributed to policies enacted during this period,” he said.
“Furthermore, the imposition of GST and heightened excise duties on diesel and petrol have exacerbated the financial strain on the populace. To illustrate, the excise duty on petrol has more than doubled, surging from ₹9.21 to ₹19.9, while diesel has witnessed a rise from ₹3.45 to ₹15.8,” Mr. Siddaramaiah said.
