Karnataka’s financial burden due to indiscipline spend of erstwhile BJP govt and cut in Central funding and not guarantees: CM

Mr. Jindal
3 Min Read

Strongly rebutting allegations that guarantee schemes had caused a huge financial burden on Karnataka’s exchequer, Chief Minister Siddaramaiah said the real reason for the financial burden was the erstwhile BJP dispensation’s “financial indiscipline” of floating huge tenders without earmarking the necessary funds and the reduction in State’s share of Central allocation by about ₹80,000 crore.

The Chief Minister also maintained that the guarantee schemes were actually development schemes that had helped in increasing the per capita income of the State.

Replying to a debate in the Legislative Assembly on issues related to development, Mr. Siddaramaiah said: “The erstwhile BJP government cleared tenders for works to the tune of ₹2.7 lakh crore without earmarking necessary funds. It floated the CM’s Discretionary Fund that made allocations of ₹1.66 crore without earmarking any funds. This, coupled with reduction in Central allocation to the tune of ₹80,000 crore is the main reason for the State’s financial burden,” he alleged.

Stating that the purchasing power of people had increased as the State government was providing benefits to the tune of ₹40,000 crore to ₹60,000 crore a year to each household through guarantee schemes, he wondered how it was not development.

Highest per capita income

“Because of guarantee schemes, the per capita income of the State had increased from ₹1.01 lakh in 2018 to ₹2.04 lakh now, which is the highest in the country,” he said.

He said the Shakti scheme of free travel in State-run road transport corporation buses had created an additional employment of 23% in Bengaluru and 21% in Hubballi-Dharwad for women.

In all, the government had provided ₹96,000 crore for guarantee schemes so far till this July-end, he noted.

He told the Opposition members, who alleged that the government was discriminating against them in releasing development grants, that it would have been possible for the State to give more funds if the Centre had not reduced Karnataka’s share of Central allocation.

When the Opposition members trouped into the well of the House to stage a dharna demanding adequate funds for their constituencies, he assured them of holding a meeting to get action plans from them to decide quantum of allocation. He made it clear that the allocation would be subject to the availability of funds. The Opposition members then withdrew the dharna.

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