Siddaramaiah defends budget borrowing

Chief Minister Siddaramaiah declared on Saturday that the people of the state want him to continue as Chief Minister, but the ultimate decision lies with the party high command. Speaking to reporters at the helipad in Pillahalli village of Mysuru taluk, he said he attaches importance only to the high command’s directive.

He expressed complete confidence in the high command and affirmed that he would abide by its instructions. If the leadership asks him to stay and carry on, he would present two more budgets.

Siddaramaiah claimed that not just the people of Mysuru but the entire state desires his continuation in the post. However, the final call belongs to the high command. He added that if given the opportunity, he would certainly present another two budgets.

Dismissing talk of record-breaking, he said he places no faith in breaking records for their own sake. Achievement lies in service, and if the people bless him and the high command permits, he would continue to shoulder the responsibility.

Responding to BJP criticism of the budget’s borrowing, Siddaramaiah asked whether the opposition had examined how much debt Prime Minister Modi had taken on. He stressed that development is impossible without borrowing. The state’s borrowing remains within the limits prescribed by the Fiscal Responsibility Act, which allows up to 25 per cent.

“Karnataka’s current borrowing stands at 24.94 per cent, well within the cap. In contrast, the central government’s debt has reached 218 lakh crore rupees, with 165 lakh crore added since Modi assumed office, amounting to 55.6 per cent. India’s fiscal deficit is 4.4 per cent of GDP, while Karnataka’s is 2.95 per cent, below the 3 per cent limit set by the Act. Under these circumstances, claims that the state government has borrowed excessively are far from the truth,” he said.

Addressing Opposition Leader R Ashok’s remark that the budget favours one section, Siddaramaiah clarified that this year’s budget centres on social justice while encompassing development for the entire state. It aims to provide equal opportunities to all sections of society.

The Chief Minister also pointed out that the central government has failed to provide the state with its rightful share of funds, increasing the financial strain. “The revision in GST rates by the Centre has caused a loss of 10,000 crore Rupees to Karnataka,” he concluded.