Siddaramaiah rejects charges of excessive borrowing

Siddaramaiah defends Karnataka's borrowing, stating it aligns with fiscal limits and supports state development amid opposition criticism.

Chief Minister Siddaramaiah on Saturday rejected the Opposition charge that the State was borrowing excessively and said the debt burden was within the limits prescribed by the Karnataka Fiscal Responsibility Act.

Speaking to reporters at the helipad in Pillahalli village in Mysuru taluk, Mr. Siddaramaiah said Karnataka’s debt stood at 24.94% of the Gross State Domestic Product (GSDP), which is within the permissible limit of 25% fixed in the Act.

He said Karnataka’s GSDP stands at ₹33,05,500 crore. “Therefore, the BJP’s allegation that the State government has borrowed excessively is far from the truth.”

He justified the need to borrow to achieve development as long as the debt burden is within the limits.

Referring to the borrowings by the Centre during Prime Minister Narendra Modi’s tenure, Mr. Siddaramaiah said the Union government’s debt stood at ₹218 lakh crore, including the ₹165 crore borrowed during the last 11 years since Mr. Modi assumed office, and added that the country’s liabilities amount to 55.6% under the provisions of the Act.

He said India’s fiscal deficit is 4.4%, whereas Karnataka’s fiscal deficit is 2.95%, which is within the 3% of GSDP limit prescribed by the law.