Bengaluru: Free bus rides for women, monthly cash transfers to women heads of households and other guarantee schemes have become the Congress government’s political calling card in Karnataka. But these have come with a price tag.
The state is struggling with mounting expenditure, transport corporation losses and growing demands for development funds, resulting in a series of price hikes that are fuelling the Opposition’s allegations that the public is being made to pay for the Congress government’s guarantees.
On Thursday, the steep 23-35 percent increase in public bus fares came into effect, joining the list of services whose prices have been spiked to bring in some much-needed capital and shore up cash-stricken transport corporations.
“80 percent of BMTC (Bengaluru Metropolitan Transport Corporation) commuters are short distance riders. That’s why they are targeted. While most Metro riders take long distance trips and therefore, Metro prices are highest for long distances. Whether you’re a short-distance commuter or long distance, DK ain’t sparing you,” Tejasvi Surya, the MP from Bengaluru South, said in a post.
80% of BMTC commuters are short distance riders. That’s why they are targeted.
While most Metro riders take long distance trips and therefore, Metro prices are highest for long distances.
Whether you’re short distance commuter or long distance, DK ain’t sparing you. https://t.co/O8nQGOUmNH
— Tejasvi Surya (@Tejasvi_Surya) November 5, 2026
R. Ashoka, Leader of the Opposition, likened the government’s freebie versus price hike policy to “a bait that hides the hook”.
“Due to this two-faced policy of the government, daily commuters like workers, students, middle-class families, and ordinary passengers are facing hardship,” Ashoka said.
ಒಂದು ಕೈಯಲ್ಲಿ ಉಚಿತದ ಆಮಿಷ, ಮತ್ತೊಂದು ಕೈಯಲ್ಲಿ ಜನರ ಜೇಬಿಗೆ ಕತ್ತರಿ! ಇದೇನಾ ಕಾಂಗ್ರೆಸ್ನ ಜನಪರ ಆಡಳಿತ?
ಜನಸಾಮಾನ್ಯರ ಬದುಕಿಗೆ ಬೆಲೆ ಏರಿಕೆಯ ಬರೆ ಎಳೆಯುತ್ತಿರುವ ಮುಖ್ಯಮಂತ್ರಿ @DKShivakumar ನೇತೃತ್ವದ @INCKarnataka ಸರ್ಕಾರದ ಜನವಿರೋಧಿ ಬಸ್ ಪ್ರಯಾಣ ದರ ಏರಿಕೆ ನಿರ್ಧಾರದ ವಿರುದ್ಧ ಬೆಂಗಳೂರಿನ ಮೆಜೆಸ್ಟಿಕ್ನ ನಾಡಪ್ರಭು… pic.twitter.com/10fvyH09on
— R. Ashoka (@RAshokaBJP) November 5, 2026
The Opposition held protests against the price hikes which came days after the Shivakumar-led government increased milk prices.
Soon after coming to power in 2023, the two Congress Chief Ministers—Siddaramaiah and now Shivakumar—have been accused of price hikes to bankroll the guarantee schemes that cost around Rs 52,000 crores annually.
The Congress government’s ‘Shakthi’ scheme, which offers free bus rides for women, cost the exchequer around Rs 7,000 crore this financial year.
The diversion of funds for guarantees has left the Congress government little to spare for development works or other infrastructure projects, forcing it to rely on borrowings.
Shivakumar’s statement Wednesday that the price rise was inevitable as the four state transport corporations do not even have sufficient funds to purchase diesel has also added to the perception that the government is running on fumes.
‘Not for profit’
In BMTC, the minimum fare has gone up from Rs 6 to Rs 10 and the maximum from Rs 35 to Rs 45. Airport bus fares have been revised from a minimum of Rs 185 to Rs 200 and a maximum of Rs 405 to Rs 425.
“The four corporations are running at a loss. We have not increased fares to make profits; we have only tried to reduce the losses,” said Byrathi Suresh, Karnataka’s Minister for Transport Wednesday. He added that the four corporations–BMTC, KSRTC, NEKRTC, NWKRTC—have a total annual revenue of around Rs 14,000 crore, while their expenditure is over Rs 16,000 crore.
The minister said the government released Rs 16,594 crore to the four corporations between 2023-24 and October 2026, while Rs 6,300 crore is yet to be paid under various schemes.
The government’s submissions to the Karnataka High Court indicate financial troubles in its other schemes.
The Karnataka Government released funds in three installments for the Gruha Lakshmi scheme for August, September and October shortly after admitting to the courts that financial constraints had caused interrupted payments.
Under the scheme, every woman head of the household gets Rs 2,000 per month. However, there have been complaints of significant sums of money going missing as well as irregular payments.
“In December 2025, Minister Laxmi Hebbalkar blamed, on the Assembly floor, technical glitches for unpaid Gruha Lakshmi dues. In November 2026, her own government cited financial constraints in court, contradicting her statement. Servers never crashed. The state’s finances did! Need more proof that this is a zero-balance, Pauper Sarkara!?” Surya said.
Losses of power distributors in Karnataka are upwards of Rs 30,000 crore. Adding to the mix is the persistent demands for more funds by the party’s own MLAs who claim that the effect of the guarantees has waned since it was first rolled out in May 2023.
Legislators, including those from the Congress, are demanding the rollback or stalling of a few guarantee schemes to use the money for development works as the 2028 election approaches and MLAs have little to show for in their respective constituencies.
Some legislators have demanded diversion of CSR funds into their constituencies to fund basic works like road repair.
‘Debt model of growth’
The chief minister reached out to Prime Minister Narendra Modi in a letter dated 4 November, but officially released Thursday, seeking financial support from the Centre to address the growing challenges in India’s IT capital.
“I request the Union Government to extend a special financial package and the necessary assistance for Bengaluru’s infrastructure development. The city that has contributed so much to India’s growth deserves the infrastructure and support it needs to grow further,” Shivakumar said in his letter to Modi.
Notwithstanding the complex financial situation between the state and the Centre, the Shivakumar government is transferring the burden to the public, his detractors allege.
Since it came to power, the Karnataka government under two Chief Ministers has increased prices of stamps & registrations, liquor, transport and several other commodities and services to make up for the shortages.
In the GST-era, state governments have seen their cash inflows dry up, forcing heavier reliance on their own taxes like transport, stamps & registration fees, liquor sales and a handful of other options. Karnataka has been no different as it continues to rely on borrowings to fund its infrastructure and other developmental projects.
From Rs 1,16,000 crore in 2025-26, Karnataka’s estimated borrowings are expected to be in the range of Rs 1,32,000 crore in the ongoing fiscal, a near 14 percent increase.
Despite the cash crunch, the Shivakumar government has announced several big-ticket projects, costing lakhs of crores, assuring expenditure to decongest Bengaluru with money it does not have.
(Edited by Viny Mishra)
Also read: Karnataka hikes bus fares; ‘not to make profit but to save corporations,’ says minister