Except for revenue surplus, Karnataka fulfils all key financial metrics: CM Siddaramaiah

Bengaluru: Chief Minister Siddaramaiah argued Friday that Karnataka was in "sound" financial health and fulfilled all metrics, except one, outlined in the Karnataka Fiscal Responsibility Act, 2002. 

Addressing a press conference after presenting the state budget for 2024-25, he said Karnataka's revenue deficit was 0.97 per cent of the GSDP and its fiscal deficit 2.95 per cent, against the upper limits of 1 and 3 per cent, respectively, outlined in the act. The state will borrow Rs 1,05,246 crore in FY 2024-25, or 23.68 per cent of the budget size, which is also well within the limit specified in the law, he stated. 

"The only thing we haven't achieved is revenue surplus, but that will stabilise next year," he said. For comparison, the government of India's revenue deficit is 2 per cent and its fiscal deficit is 5.8 per cent, he added. 

Karnataka's budget size for FY 2024-25 is Rs 3,71,383 lakh crore, as against the Rs 3,27,747-crore budget presented in July 2023, he said. 

The chief minister passionately defended the Congress government's five guarantees, which would cost Rs 52,009 crore in FY 2024-25, and said they hadn't bankrupted Karnataka. He promised to release the necessary funds for the flagship schemes if there was any shortfall. He insisted that "sufficient" funds had been earmarked for developmental works. 

Siddaramaiah criticised the BJP-led union government for 'betraying' the people of Karnataka by "short-changing" them in tax devolution and central government funds. 

He reeled off statistics to argue that Karnataka had lost Rs 62,000 crore in tax devolution since 2017. "If Karnataka had this money, it would have developed like European countries," he said. 

He said it was "distressing" that the union government had failed to release Rs 5,300 crore in central assistance for the Upper Bhadra Project as promised by Finance Minister Nirmala Sitharaman in the 2023-24 budget. 

With Karnataka suffering a loss of Rs 35,000 crore due to severe drought, the state sought Rs 18,171 crore from the National Disaster Response Fund (NDRF) but didn't get a single paisa, he said. The 15th Finance Commission recommended Rs 6,000 crore for Bengaluru's development but the Centre has yet to release this money. "Is it a crime to ask for these funds," he asked and sought to know why BJP leaders get angry when he talks about it. 

He slammed the opposition BJP's decision to stage a walkout during the budget speech, calling it "unprecedented". "Even before I started my speech, they said there was nothing in it. This is senseless political opposition," he said. 

SC/ST funds for guarantees

Siddaramaiah said the government would continue to use funds from Schedule Caste/Schedule Tribe Sub-Plans for implementing the guarantees but added that it would take "only what is necessary". 

"Our guarantees benefit a large section of the population, including members of SC/ST communities," he said.