Chief Minister hits back at BJP, says State’s economy was pushed to the brink during its rule

Chief Minister Siddaramaiah defends Karnataka's strong economy, blames BJP for past financial mismanagement, and criticizes Central government's actions.

Hitting back at Opposition BJP leaders for their remarks over Karnataka’s financial situation, Chief Minister Siddaramaiah on Friday said it was during the BJP’s rule that the State’s economy was pushed to the brink of collapse.

Asserting that Karnataka’s economy remains strong despite this, he said the State’s average Budget growth over the last two years was 18.3% as against just 5% during the BJP’s four-year rule.

The Chief Minister was responding to allegations made by Opposition leaders that the State’s economy is declining and Karnataka is heading towards “bankruptcy”, holding the Congress  government’s guarantee schemes as responsible for it.

“Our government is working hard to bring the State’s economy back on track after the mismanagement and chaos caused by the BJP’s irresponsible financial policies. It is unfortunate that the BJP cannot accept or understand this,” he said in a statement.

“The State’s own tax revenue growth is 15% as against 11% during the BJP’s tenure. We are providing over ₹90,000 crore annually directly to the people through DBT and subsidies... The Central government contributes only ₹450 crore, the same as during former Prime Minister Manmohan Singh’s tenure. What has the BJP done for Karnataka?” he asked.

Stating that Karnataka’s fiscal discipline is intact, the Chief Minister said the fiscal deficit is below 3%, and total liabilities are within 25% of the GSDP. “Our capital expenditure is better than neighbouring progressive States. Karnataka is spending 15.01% of its Budget on capital expenditure as against 12.74% by Maharashtra, 10.58% by Tamil Nadu, and 11.58% by Telangana,” he said.

He added that Karnataka was providing over ₹52,000 crore for guarantee schemes and supporting farmers in distress. “Our government has implemented the 7th Pay Commission report, increasing salaries by 27.5%. We are paying an additional ₹16,000 crore in salaries this year.”