No respite from skyrocketing costs in Karnataka

Congress government in Karnataka faces backlash for increasing costs of essentials, taxes, and prices, impacting common people negatively.

The 20 months of the Congress government in Karnataka has seen costs of several essentials increasing, with taxes and prices going up, providing no respite to common people.

This has given ammunition to the Opposition to target the government, arguing that the government is taxing people, unable to bear the fiscal burden of funding the five guarantee schemes, which costs the State exchequer nearly ₹60,000 crore annually.

The Siddaramaiah-led government began the New Year by hiking fares of Road Transport Corporations (RTCs). Earlier, it had hiked prices of Nandini milk (offering extra milk per sachet), fuel, stamp registration charges, hospital admission and investigation charges, guidance values, motor vehicle registration, and liquor prices. Now, the government is mulling hiking prices of milk, water, electricity and Metro train services too.

Recent hikes in bus fares and carriages would lead to a jump in core inflation (transport and food) and adversely impact the public. As on November, 2024, inflation in Karnataka was 5.07% against the country’s average of 5.48%.

The hike in prices of all major services, bus fares and KSRTC bus carriages (hiring buses for rallies, pilgrimages) in the new year has become a political flashpoint between the ruling Congress and the Opposition BJP and the JD (S). Pinning it all on the spend on guarantee schemes, they have alleged that developmental works have come to a standstill owing to lack of funds.

While the Chief Minister justified the government’s “welfare approach” of empowering the poorer sections through guarantees, the Opposition ridiculed them as “Bitti Bhagays” and claimed that it would make the State’s coffers empty. What has given more ammunition to the opposition is a section of Congress legislators themselves voicing their disappointment over the implementation of guarantees, claiming it has curtailed funds to their constituencies.

Soon after it assumed power in May 2023, the government increased the excise duty on the maximum retail price (MRP) of all brands of liquor by 20% and the beer by 10%. On October 1, 2023, the guidance values were revised. The property buyers have been paying more for registration of properties with the new revised guidance value, hiked by an average of 25% to 30% in Bengaluru.