LoP R. Ashoka cited the CAG report to accuse the Congress govt of pushing Karnataka into a debt trap, highlighting a Rs 65,522 crore fiscal deficit to fund guarantee schemes at the cost of development.
Leader of the Opposition R. Ashoka on Wednesday launched a sharp attack on the Congress government, citing the Comptroller and Auditor General’s (CAG) report that highlighted Karnataka’s worsening financial situation. He accused Chief Minister Siddaramaiah of pushing the state into a “debt trap” through unscientific guarantee schemes and poor fiscal management.
Ashoka pointed out that the state’s fiscal deficit has risen sharply—from Rs 46,623 crore in 2022–23 to Rs 65,522 crore in 2023–24. He said this alarming increase proves that the government’s guarantees are unsustainable, with borrowings of Rs 63,000 crore adding a heavy interest burden on future generations.
The report also revealed that capital investment in infrastructure sectors like roads and irrigation has been cut by Rs 5,229 crore, leading to a 68% increase in incomplete projects. Ashoka alleged that nearly Rs 36,538 crore—about 15% of the state’s revenue expenditure—was diverted to guarantee schemes, while the overall subsidy bill stood at Rs 60,774 crore, crippling development.
According to the CAG, 15% of the borrowings went to flagship programs: Rs 16,964 crore for Gruha Lakshmi, Rs 8,900 crore for Gruha Jyoti, Rs 7,384 crore for Anna Bhagya, Rs 3,200 crore for Shakti, and Rs 88 crore for Yuva Nidhi.
Ashoka warned that if corrective measures are not taken, Karnataka’s economy will face mounting debt pressure and stagnation. He called the Congress’s so-called “Karnataka Model” a short-sighted experiment, stressing that budgets should focus on long-term growth rather than political gains.