Karnataka’s debt rose to Rs 8 lakh crore, says Union Minister; calls the Budget ‘minority-oriented’
Bengaluru: Union Minister for Food, Public Distribution and Consumer Affairs, Pralhad Joshi, has criticised the state Budget presented by Karnataka Chief Minister Siddaramaiah, stating that it has driven the state’s debt close to Rs 8 lakh crore and is primarily focused on appeasing minorities.
Addressing the media in Bengaluru on Friday, Union Minister Joshi remarked that while CM Siddaramaiah has presented a Rs 4.09 lakh crore Budget, it lacks substance.
“A Budget should ensure the welfare of all sections of society and balanced development across all regions. However, this Budget is solely aimed at appeasement,” he said.
Union Minister Joshi accused the Chief Minister of failing to present a Budget that ensures balanced development.
“Karnataka, which was financially strong, has now been pushed into a debt trap. The state’s debt has increased from Rs 24,974 crore to Rs 26,474 crore,” he alleged.
According to Union Minister Joshi, the state Budget has a revenue deficit of Rs 19,262 crore and a financial burden of Rs 7.64 lakh crore.
With the Gross State Domestic Product (GSDP) standing at 24.91 per cent, he expressed concerns that Karnataka will soon breach the 25 per cent fiscal deficit limit set by the Fiscal Responsibility and Budget Management (FRBM) Act.
The Union Minister criticised the state Budget for lacking any concrete proposals to drive Karnataka’s economic growth.
“The Chief Minister constantly depends on the Central government for everything instead of focusing on the state’s comprehensive development. The Budget completely fails to lay strong financial foundations for Karnataka’s progress,” he said.
Union Minister Joshi added that Karnataka’s total debt is nearing Rs 8 lakh crore, amounting to 23 per cent of the state’s GDP, which he termed as “alarming”.
He also said that the revenue expenditure is Rs 3,11,400 crore, while the capital expenditure stands at Rs 76,400 crore, with no proper fiscal discipline in place to manage the deficit.
The Union Minister also criticised the state Budget for neglecting infrastructure development, calling it a major setback for the state’s economic growth.
“Only 14 per cent of the Budget has been allocated to agriculture and rural development, 10 per cent to education, and merely five per cent to healthcare. This Budget does not address the needs of the common people,” he said.
“A state’s infrastructure is key to attracting investments. However, in his 16th budget, CM Siddaramaiah has completely ignored this sector, making the state Budget highly disappointing,” he concluded.
Taking to social media X, Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, opined that, “Favouritism for a few and disregard for the majority! This is the true face of the Congress-led Karnataka government’s budget — appeasement over development.”
Former Chief Minister and BJP MP Basavaraj Bommai criticised the 2025-26 state Budget presented by Chief Minister Siddaramaiah, and said that it lacks measures for economic reform and empowerment.
He called it an “anti-people” and “disappointing” Budget that imposes a financial burden on the public.
In a press statement here on Friday, Bommai said that there was a significant gap between last year’s Budget promises and actual implementation.
While last year’s Budget projected a total revenue of Rs 3,68,674 crore, the current Budget estimates it at Rs 3,58,657 crore –indicating a shortfall of Rs 10,000 crore, he added.
Similarly, the total expenditure was projected at Rs 3,71,383 crore last year but has now been reduced to Rs 3,65,865 crore, with capital expenditure declining as well. This has hindered the state’s 2024-25 growth rate, he said.
Bommai said the state Budget shows a fiscal deficit of 2.95 per cent, but in reality, it will exceed three per cent of the state’s GSDP.
“The figures were merely adjusted to appear favorable. Additionally, the state’s total debt has now reached Rs 7,64,655 crore, which amounts to nearly 25 per cent of the GSDP, indicating an impending financial crisis,” he added.
The former CM also criticised the reduction in allocations for education (by two per cent) and women and child development (by one per cent).
He expressed disappointment that no special funds were allocated for irrigation, rural development, and agriculture, calling it an “anti-farmer” Budget.
Condemning the state Budget for failing to address regional imbalances, Bommai said that the Rs 5,000 crore allocated to the KKRDB (Kittur Karnataka Region Development Board) was inadequate, especially since last year’s allocated funds were not fully utilised.
Besides, the state government has not announced any special financial aid for the development of Kittur Karnataka and termed it a major disappointment for the people of the region, the BJP leader added.
Bommai has criticised the state Budget, stating that it does nothing to address the regional disparities in north Karnataka and is largely limited to the Bengaluru-Mysuru region.
Calling the budget “anti-people” and “anti-development”, he said that no new schemes have been introduced to reduce regional imbalances.
“Last year too, Rs 5,000 crore was allocated for Kalyana Karnataka, and the same amount has been allocated this year, but the funds remain unspent. Meanwhile, Kittur Karnataka has received zero allocation. This Budget is entirely focused on the Bengaluru-Mysuru region,” he alleged.
