Synopsis
Chief Minister Siddaramaiah has responded to BJP's accusations of Karnataka's financial instability, asserting that the state's economy is strong. He urged the opposition to stop spreading lies and highlighted the fiscal discipline and initiatives undertaken by his government to empower the people.Key Takeaways
- Karnataka's economy remains strong.
- CM Siddaramaiah urges opposition to stop spreading lies.
- Fiscal deficit is below 3 percent.
- Direct Benefit Transfers exceed Rs 90,000 crore annually.
- Capital expenditure is higher than neighboring states.
Bengaluru, Feb 21 (NationPress) In response to ongoing accusations from opposition leaders about Karnataka facing bankruptcy under the Congress-led administration, Chief Minister Siddaramaiah has urged the opposition to cease disseminating falsehoods, asserting that the state's economy is robust.
In a statement addressing the assertions made by opposition figures, including BJP state president B.Y. Vijayendra and former CM and BJP MP Basavaraj Bommai, Siddaramaiah challenged their claims regarding the financial state of Karnataka.
Siddaramaiah remarked: “They allege that the state's economy is faltering, that Karnataka is on the brink of bankruptcy, and that the financial framework has collapsed. They have also condemned our government's guarantee schemes and other initiatives designed to empower the populace.”
The truth is that during the BJP's governance, the state's economy was nearly driven to collapse. Now, from the opposition benches, they act as if they are esteemed economists.
“Our government is diligently working to restore the state's economy after the turmoil and mismanagement instigated by the BJP's reckless financial strategies. It is regrettable that the BJP cannot accept or comprehend this,” he highlighted.
Siddaramaiah continued, “Consider the examples of the BJP's mismanagement - during their administration, they undertook projects that exceeded the budget allocation by seven times. By March 31, 2023, they had left behind outstanding payments totaling Rs 2,70,695 crore for critical sectors such as Public Works, Minor Irrigation, Water Resources, Urban Development, Rural Development, and Housing.”
They also sanctioned projects amounting to Rs 1,66,426 crore from the Chief Minister's discretionary fund.
Is it possible to rectify such financial mismanagement, irresponsibility, and corruption in just a few years? CM Siddaramaiah questioned.
Even though the BJP-led Central government has been exploiting Karnataka's resources, state BJP leaders have remained silent. This situation resembles a lamb being skinned while it continues to graze, oblivious to its fate.
The Central government ceased compensating the state for GST shortfalls, leading to an annual revenue loss of Rs 18,000-20,000 crore. However, they continued to impose taxes on the populace, he asserted.
“Despite these challenges, Karnataka's economy is resilient. Here are some key indicators - our average budget growth over the last two years stands at 18.3 percent, in contrast to merely 5 percent during the BJP's four-year rule. The growth rate of the state's own tax revenue is 15 percent, compared to 11 percent during the BJP's tenure.
“We are disbursing over Rs 90,000 crore annually directly to citizens through Direct Benefit Transfers (DBT) and subsidies, which includes Rs 10,400 crore for senior citizens, disabled individuals, widows, and others. Meanwhile, the Central government contributes a mere Rs 450 crore, the same as during former Prime Minister Manmohan Singh's administration. What has the BJP achieved for Karnataka?” the CM queried.
Furthermore, the Karnataka Chief Minister asserted: “Our fiscal discipline remains intact. The fiscal deficit is below 3 percent, and our total liabilities are within 25 percent of GSDP. These figures were out of control during the BJP's governance. Our capital expenditure outpaces that of neighboring progressive states, with Karnataka allocating 15.01 percent of its budget to capital expenditure, compared to Maharashtra (12.74 percent), Tamil Nadu (10.58 percent), and Telangana (11.58 percent).
“Despite the BJP's conspiracies and betrayals, Karnataka stands resilient. We are allocating over Rs 52,000 crore for guarantee schemes and assisting distressed farmers. We are honoring our commitments to Kalyan Karnataka and providing funds to all regions of the state, including Bengaluru. While Bommai, during his tenure as Water Resources Minister, neglected to allocate funds for the Krishna Upper Bank project, our administration has resolved to complete the land acquisition process,” CM Siddaramaiah stated.
“Once again, I wish to emphasize that Karnataka's economy is sufficiently strong to endure the BJP's betrayals. We will persist in advocating for our rights against the injustices of the BJP-led Central government. We stand firm in our commitments to our citizens. I urge the opposition to cease spreading untruths and collaborate with the government for the benefit of Karnataka's populace,” concluded CM Siddaramaiah.
