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BJP: Karnataka moving towards bankruptcy under Congress
BY Vijayendra said that state’s financial health was deteriorating due to unfulfilled guarantees and reckless borrowing
The Congress-led state government is driving Karnataka towards bankruptcy, Karnataka BJP president BY Vijayendra said on Monday in response to chief minister Siddaramaiah’s recent dismissal of opposition claims about an economic crisis.
Two days after Siddaramaiah rejected allegations that the state’s finances were in distress, Vijayendra, in an open letter, challenged the CM’s narrative, alleging that fiscal mismanagement, diversion of funds, and mounting debts had weakened Karnataka’s financial stability. The letter comes ahead of the state budget presentation on March 7.
Vijayendra said that state’s financial health was deteriorating due to unfulfilled guarantees and reckless borrowing. He pointed out that government departments collectively owed ₹6,000 crore in unpaid electricity bills, while the transport department alone had pending dues of ₹7,000 crore.
“Karnataka is moving towards complete bankruptcy under the Congress government. The government is struggling to pay salaries. Power supply companies are unable to clear their bills. Karnataka is heading towards a severe financial crisis,” he wrote, demanding that the administration release a White Paper on the state’s financial condition.
He also accused the Congress government of misallocating ₹25,426 crore meant for Scheduled Caste and Scheduled Tribe welfare and failing to meet its electoral commitments.
Vijayendra linked economic mismanagement to administrative inefficiency, alleging a breakdown in law and order across the state. “The leniency shown towards rioters in incidents like the DJ Halli and KG Halli violence has emboldened miscreants. Law and order have collapsed in Shivamogga, Hubballi, and Mysuru. Yet, instead of taking action, your government is busy withdrawing cases against offenders,” he said.
He also took a swipe at deputy chief minister DK Shivakumar’s remark that “even God cannot solve Bengaluru’s traffic woes,” questioning the government’s competence. Besides, he criticised fare hikes on Bengaluru Metro and state-run buses, saying they placed an unnecessary financial burden on citizens.
Vijayendra warned that Karnataka’s debt had soared by ₹2 lakh crore in just two years. “How much more debt will you take this year? Karnataka was once a prosperous state, but now it is unable to clear even electricity and contractor payments,” he said.
With the budget session around the corner, he urged Siddaramaiah to prioritise economic stability. “I don’t know if you will present the next budget, but this is an opportunity to ensure Karnataka’s economic stability,” he wrote, warning that further mismanagement could push the state into deeper financial distress.
Vijayendra’s letter was a direct rebuttal to Siddaramaiah’s statement made on Saturday where chief minister dismissed BJP’s claims of a financial crisis, arguing that his government had inherited a troubled economy from the previous administration. “During the BJP’s rule, the state’s economy was pushed to the brink of collapse. Now, while sitting in the opposition, they are speaking as if they are great economists,” Siddaramaiah said.
He alleged that the BJP government had left behind ₹2,70,695 crore in unpaid bills across crucial departments, including public works, water resources, and housing, as of March 31, 2023. He also said that the previous administration had sanctioned projects worth ₹1,66,426 crore under the chief minister’s discretionary fund without financial planning.
Siddaramaiah accused the BJP-led central government of withholding Karnataka’s share of financial resources. He stated that changes in tax devolution had resulted in Karnataka receiving ₹51,000 crore instead of the ₹73,000 crore it should have received. He also claimed that the discontinuation of GST compensation had created an annual revenue shortfall of ₹18,000- ₹20,000 crore.
Despite these challenges, he asserted that Karnataka’s economy remained stable. “Our average budget growth over the last two years is 18.3%, compared to just 5% during the BJP’s four-year rule,” he said, emphasising that tax revenue growth had been stronger under his leadership. He also highlighted that the state was investing ₹90,000 crore annually in direct benefit transfers and subsidies.
Siddaramaiah further criticised the Modi government’s handling of national debt, pointing out that the Centre’s liabilities had risen from ₹53.11 lakh crore in 2013-14 to an estimated ₹200.16 lakh crore by March 2026. He argued that this had weakened state finances, with the combined debt of all states surging from ₹25 lakh crore in 2014 to over ₹95 lakh crore.
Defending his government’s spending, he noted that Karnataka allocated 15.01% of its budget to capital expenditure, a higher share than Maharashtra, Tamil Nadu, and Telangana. “Despite the BJP’s conspiracies and betrayals, Karnataka continues to stand strong,” Siddaramaiah said, urging the opposition to stop “spreading lies” and work towards the state’s progress.
With both parties locked in a heated exchange, the upcoming budget session is likely to see further political confrontation over Karnataka’s economic trajectory.
