Oppn claims of excessive borrowing in Karnataka budget ‘not true’, says Siddaramaiah

Siddaramaiah, the Chief Minister of Karnataka, on Saturday rejected opposition claims that his government had resorted to excessive borrowing in the latest state budget, insisting that the state’s debt remains within legally prescribed limits.

Speaking to reporters at Pillahalli village near Mysuru, Siddaramaiah said the budget was designed to promote balanced development and ensure equal opportunities for people from all sections of society.

His remarks came in response to criticism from the opposition Bharatiya Janata Party (BJP), which has accused the Congress-led government of pushing the state into higher debt through its spending plans.

The chief minister said borrowing was a necessary tool for development and pointed out that debt levels had also increased under the government of Prime Minister Narendra Modi at the national level.

According to Siddaramaiah, the state’s borrowing currently stands at 24.94 per cent of its permitted limit under the Fiscal Responsibility Act, which allows borrowing of up to 25 per cent.

“Our borrowing is within the prescribed limit. Development cannot take place without borrowing,” he said.

The chief minister also compared Karnataka’s fiscal position with that of the central government, claiming that the Centre’s total debt had risen significantly in recent years.

He said the national debt currently stands at around Rs 218 lakh crore and that approximately Rs 165 lakh crore had been added since Modi took office.

Siddaramaiah added that India’s fiscal deficit stands at about 4.4 per cent, while Karnataka’s fiscal deficit is 2.95 per cent — within the legally permitted 3 per cent of the state’s gross domestic product.

He said the state’s GDP is estimated at around Rs 33.05 lakh crore.

Responding to criticism from BJP leader R. Ashoka that the budget favours certain sections of society, Siddaramaiah said it was prepared with a focus on social justice and inclusive development.

“This budget aims to ensure equal opportunities for all communities and support the overall growth of the state,” he said.

The chief minister also accused the central government of causing financial losses to the state by withholding funds that rightfully belonged to Karnataka.

He claimed that changes in Goods and Services Tax rates by the Centre had resulted in a loss of about ₹10,000 crore for the state.

Siddaramaiah also indicated that he would be willing to present future budgets if given the opportunity by the party leadership.

“The decision of the high command will be final. If I receive the opportunity and the people’s support, I will continue to fulfil my responsibilities,” he said.

Meanwhile, Union Minister Pralhad Joshi criticised the Rs 4.48 lakh crore state budget, describing it as large in size but burdened with rising debt and fiscal pressures.

Joshi said the budget projected a fiscal deficit of Rs 97,449 crore and a revenue deficit of Rs 29,957 crore. He also alleged that the spending plans appeared to be driven by electoral considerations.

The minister further claimed that the budget would add a debt burden of about Rs 1.32 lakh crore to the state’s finances.

With IANS inputs