Bengaluru, Mar 25 (PTI) Karnataka Chief Minister Siddaramaiah on Wednesday defended his 17th State Budget in the Assembly, asserting that the government had maintained fiscal discipline while prioritising welfare and development.
He dismissed opposition criticism as politically motivated.
Replying to the debate on the budget that went on for 24 hours and 45 minutes with participation from 50 members, the chief minister said the budget reflects a balance between social justice and economic growth, while emphasising that borrowing was within permissible limits and necessary for development.
“There has been criticism that the government is running on loans. However, our government has borrowed Rs 1.32 lakh crore, and when the budget size is Rs 4,48,004 crore, how can it be called a loan-based budget? Saying that the government is running on loans is far from the truth,” he said.
He maintained that borrowing is inevitable for any government and added that no state or country can function without borrowing. Loans must be taken for social welfare and development.
He noted that the state’s total debt stands at Rs 8.24 lakh crore and has been kept within prescribed limits.
Taking a swipe at the opposition, Siddaramaiah said no matter how much the opposition criticises, a mango cannot become a neem fruit, rejecting claims that the budget was “empty”.
He asserted that the budget was a full pot.
The chief minister said Rs 1.31 lakh crore had been spent on guarantee schemes so far and stressed that allocations for welfare programmes had been consistent. He also clarified that Rs 600 crore had been earmarked for the ‘Yuva Nidhi’ scheme and that it had not been discontinued.
Yuva Nidhi is one of the five guarantees, which offers Rs 3,000 to the graduates and Rs 1,500 to the diploma holders who passed in the year 2023-24 and are still unemployed.
On fiscal concerns, Siddaramaiah said the state aimed for a revenue surplus budget but could not achieve it due to “non-cooperation from the central government.” He alleged that reduction in GST rates had brought down the state’s GST growth from 10 per cent to four per cent.
He added that the stoppage of GST compensation after 2023–24 had caused a loss of Rs 10,000 crore, with a further Rs 15,000 crore loss projected in 2026–27.
Highlighting spending priorities, the CM said the government had allocated Rs 10,600 crore for social security schemes and increased outlay on education to Rs 72,386 crore for 2026–27, while also doubling allocations to BBMP compared to the previous regime.
Detailing further, Siddaramaiah said the state’s budget size had increased to Rs 4,48,004 crore, marking a 9.4 per cent growth over the previous year, compared to 5.6 per cent growth in the Union Budget. He added that Karnataka’s GSDP growth at 8.1 per cent outpaced the national GDP growth of 7.4 per cent.
He asserted that fiscal discipline had been maintained with the fiscal deficit projected at 2.95 per cent of GSDP and total liabilities at 24.94 per cent, within statutory limits.
In contrast, he pointed out that the Centre’s fiscal deficit was projected at 4.3 per cent and liabilities at 55.6 per cent of GDP, exceeding recommended thresholds.
Criticising the previous BJP government, he questioned the utilisation of borrowed funds, alleging that despite leaving behind a debt of Rs 5.53 lakh crore in 2023, there was inadequate investment in infrastructure and welfare.
“I have never said that loans should not be taken. The key question is whether the borrowed funds are used for public welfare,” he said, reiterating that his government’s approach was rooted in social justice and inclusive growth.
The chief minister said the budget was guided by the compassion of Buddha and the social justice principles of Ambedkar, and was aimed at empowering vulnerable sections, including women, farmers, labourers and backward classes.
He urged the opposition not to oppose his budget merely for political reasons. PTI GMS GMS KH
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