Bengaluru: Amid the by-elections campaign, Karnataka Chief Minister Siddaramaiah on Tuesday strongly rejected Bharatiya Janata Party (BJP) State President and Member of Legislative Assembly B. Y. Vijayendra’s demand for a white paper on Karnataka’s financial condition, terming it a reflection of “lack of economic understanding, administrative experience, and political frustration.”
In a detailed press statement, Siddaramaiah asserted that the State Budget presented last month itself serves as a “transparent and honest account” of the government’s finances.
He noted that the Budget had been debated and approved in both Houses of the Legislature, with Opposition members raising questions that were duly answered.
He added that if doubts remained, he was ready to clarify and even engage in an open debate.
Dismissing allegations that the State is financially bankrupt, the Chief Minister said no department was facing difficulty in paying salaries and maintained that both the economic and political situation in Karnataka remained stable.
He accused BJP leaders of making such claims out of “helplessness and jealousy” as they were unable to counter the government politically.
Highlighting key economic indicators, Siddaramaiah said the State’s Budget for 2025-26 stands at Rs 4,48,004 crore, marking a 9.4 per cent increase over the previous year, compared to the Union Government’s 5.6 per cent growth.
He added that Karnataka’s Gross State Domestic Product (GSDP) growth rate of 8.1 per cent surpasses the national Gross Domestic Product (GDP) growth of 7.4 per cent, reflecting strong economic performance.
On fiscal discipline, he said the State’s total liabilities stand at 24.94 per cent of GSDP, within the 25 per cent limit prescribed under the Fiscal Responsibility Act, while the Centre’s liabilities have reached 55.6 per cent of GDP, exceeding norms.
Similarly, Karnataka’s fiscal deficit remains within the 3 per cent threshold, whereas the Centre’s deficit stands at 4.3 per cent.
The Chief Minister also accused the Union Government of adopting a “stepmotherly approach” towards Karnataka in tax devolution, Goods and Services Tax (GST) compensation, and centrally sponsored schemes.
He said the State’s share in central taxes had been reduced under successive Finance Commissions, resulting in significant revenue losses.
Siddaramaiah claimed that since the implementation of GST, Karnataka has suffered a cumulative loss of over Rs 2 lakh crore due to reduced tax share, denial of compensation, and policy changes.
He added that the discontinuation of GST compensation since 2023 has led to revenue deficits, further aggravated by GST rate revisions that have impacted collections.
Criticising the Centre’s borrowing, he said the national debt had risen sharply under PM Modi, alleging that the country was being pushed into a “debt trap.”
He also targeted the previous BJP government in Karnataka, stating that despite heavy borrowing, it failed to deliver adequate infrastructure or welfare measures, leaving behind a debt burden of over Rs 5.53 lakh crore.
Urging Vijayendra to “do some homework,” Siddaramaiah said meaningful debate should be based on facts rather than political rhetoric.
(IANS)
