Stating that the projects announced by the State government after its September 18 Mangaluru Cabinet meeting are merely eye wash, Mangaluru City South MLA D. Vedavyas Kamath claimed on Wednesday that the government does not have funds to take up those projects.
Addressing presspersons, the MLA said that a recent note by the State Finance Department cautioned the State government against announcing new projects or schemes without assured funding, noting that borrowing capacity for the fiscal year has been exhausted.
The MLA said that the note said the State had exhausted its borrowing capacity to meet budgetary announcements for 2026-27 and taking up any new schemes would lead to cutting down allocations from other departments.
He said the note had clearly stated that the fiscal deficit had stood at 2.95% as against the permitted level of 3%. The revenue deficit was at ₹22,957 crore and the cumulative liabilities compared with the GSDP (Gross State Domestic Product) had touched 24.94% as against the permitted level of 25%.
“The projects announced in Mangaluru are nothing but a publicity stunt. The government does not have funds to take up projects announced in the State Budget. How will it take up new projects?,” he asked.
ADB Loan
Mr. Kamath said that an application filed under RTI Act has revealed that the volume of ₹380.34 crore loan availed by the Mangaluru City Corporation from the Asian Development Bank (ADB) two decades ago has now touched ₹1,375.17 crore, including interest amount. Though the term of the loan expires in 2026, the MCC and the State government have not repaid the loan. The MCC had availed itself of the loan for taking up underground drainage and drinking water supply projects. Non-payment of loan reveals that the treasury of the Congress-led government is empty, he said.
The MLA said that the government has instructed the MCC to use its own fund for implementing its Bharat Jodo programme ward-wise. It requires more than ₹6 crore at the rate of ₹10 lakh per each ward. It is unfortunate, he said.
Published – September 30, 2026 07:23 pm IST
