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Key Points

Union Minister Pralhad Joshi has launched a scathing attack on Karnataka's Congress government, highlighting the financial mismanagement through its guarantee schemes. The Comptroller and Auditor General's report reveals these schemes have consumed 15% of the state's revenue expenditure. Karnataka has dramatically shifted from being a revenue-surplus state to a deficit state in just one year. The mounting fiscal challenges could potentially stall developmental projects and increase economic strain on the state.

Key Points: Pralhad Joshi Exposes Karnataka Congress Guarantee Scheme Fiscal Drain

  • CAG report confirms 15% revenue expenditure consumed by Congress guarantees
  • Karnataka's fiscal deficit jumped from Rs 46,623 to Rs 65,522 crore
  • State transformed from revenue-surplus to deficit in one year
  • Debt burden increased by nearly Rs 63,000 crore due to unscientific schemes
2 min read

Unscientific guarantees have swallowed K'taka's revenue, claims Pralhad Joshi

Union Minister Pralhad Joshi reveals how Congress guarantees consumed 15% of Karnataka's revenue, causing massive fiscal instability.

"The CAG report itself has exposed this reality. - Pralhad Joshi"

Bengaluru, Aug 20

Union Minister for Food, Public Distribution and Civil Supplies Pralhad Joshi on Wednesday asserted that the Congress-led government in Karnataka has swallowed up the state's revenue through its five unscientific guarantee schemes.

Speaking to reporters in Delhi, Union Minister Joshi stated: "The Comptroller and Auditor General's (CAG) report tabled in the state assembly itself has exposed this reality. The report points out that the five unscientific guarantee schemes of the Congress have consumed nearly 15 per cent of the state's revenue expenditure."

According to the CAG report, Karnataka, which was once a revenue-surplus state, has now witnessed a shortfall due to these guarantees, leading to financial instability. Joshi remarked that it will take several years for the state's economy to regain stability.

He recalled that during the 2022-23 financial year, Karnataka was a revenue-surplus state. But now it has turned into a deficit state, causing severe stagnation in development.

Joshi further stated that in the 2023-24 financial year, the fiscal deficit rose from Rs 46,623 crore to Rs 65,522 crore, along with a revenue shortfall of Rs 9,271 crore.

The Union Minister charged that because of the Congress government's unscientific guarantees, Karnataka's debt burden has now risen by nearly Rs 63,000 crore. This, he added, has not only reduced capital investment but also hindered developmental works.

Joshi also criticised the government for making life costlier for the public by increasing prices of essentials such as diesel, milk, electricity, metro, and BMTC bus fares.

The Comptroller and Auditor General's (CAG) report has revealed that the five guarantee schemes implemented by the government of Karnataka accounted for 15 per cent of Revenue Expenditure for the year 2023-24.

It further underlined that to finance guarantees, the Congress-led government has availed Rs 37,000 crore loan more than the previous year and reduced capital expenditure.

The report was tabled in the Legislative Assembly on Tuesday and the details have surfaced on Wednesday.

The CAG stated: "Implementation of the schemes resulted in the increase in growth of expenditure (12.54 per cent from the previous year) which was the contributing factor of Revenue Deficit of Rs 9,271 crore. Consequently, fiscal deficit of the state also increased from Rs 46,623 crore in 2022-23 to Rs 65,522 crore in 2023-24."

- IANS

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Reader Comments

S
Shreya B
While I support welfare schemes, increasing debt by ₹63,000 crore in one year is alarming! This will burden our children's future. There has to be a balanced approach 🧐
Michael C
As someone working in finance, these numbers are staggering. A revenue surplus state turning into deficit in one year shows poor fiscal management. The CAG report doesn't lie
P
Priya S
But let's not forget these schemes are helping poor families! My domestic help's daughter is going to college because of the education guarantee. Sometimes welfare needs investment 💭
A
Aditya G
The real problem is they increased prices of everything - milk, electricity, transport! So they give with one hand and take away with another. Very clever politics but bad for common people
N
Nisha Z
CAG reports are usually accurate. If they're saying 15% of revenue expenditure went to these schemes, that's huge! Could have built so many hospitals and schools with that money instead
K
Karthik V
Both state and central governments play blame game. Instead of political mudslinging, they should sit together and find solutions. Karnataka's development shouldn't suffer because of politics 🤝

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