Karnataka Home Minister Acknowledges State's Financial Constraints, Seeks Central Assistance

Karnataka Home Minister Acknowledges States Financial Constraints, Seeks Central Assistance
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Karnataka's Home Minister G Parameshwara publicly admits the state faces severe budget constraints due to welfare spending, urging local leaders to seek central government funding for development projects.

During a public gathering in Bagalkot district, Karnataka Home Minister G Parameshwara made a candid admission about the state's financial situation. He revealed that the government currently lacks adequate resources to fund major development initiatives and encouraged local representatives to approach the central government for project financing.

The Home Minister's frank statement highlighted how the state's extensive welfare programs have significantly impacted the budget. "We don't have money, even Siddaramaiah doesn't have funds now. We've already given everything to the people in the form of rice, dal, and oil, yes even oil," Parameshwara stated, referring to the Congress administration's signature guarantee schemes.

The financial strain appears to stem from the ruling party's commitment to fulfilling its electoral promises, particularly the welfare schemes that were central to their campaign. These programs, while popular among beneficiaries, have reportedly consumed substantial portions of the state budget, leaving limited resources for infrastructure and development projects.

In his address to local leaders, Parameshwara suggested they should think ambitiously about development proposals. He specifically recommended preparing a comprehensive Rs 1,000 crore development plan for the Badami region, focusing on heritage conservation and regional development. "You should take up a big project, something worth Rs 1,000 crore. Don't be afraid of the amount," he advised, emphasizing that such substantial proposals should be submitted to the central government for consideration.

The minister's comments align with earlier reports indicating delays in welfare scheme payments. According to available information, beneficiaries of the Gruha Lakshmi scheme have not received their promised monthly Rs 2,000 allowance since late 2024. Similarly, the Anna Bhagya scheme's additional cash benefits have been suspended for several months.

Official data from the Karnataka Development Programme reveals significant implementation gaps in these welfare initiatives, with budget shortfalls running into thousands of crores. This financial pressure has reportedly led the state government to explore alternative funding mechanisms, including the possibility of leveraging state assets to raise capital for essential projects.

The situation reflects broader challenges faced by state governments in balancing populist welfare measures with necessary infrastructure development. As Karnataka navigates these financial constraints, the emphasis on securing central government support for major projects appears to be a key strategy for addressing developmental needs while managing existing fiscal commitments.

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