Bengaluru, March 14 (IANS) Leader of the Opposition R. Ashoka has said that the Congress-led government in Karnataka failed to implement several promises made in last year’s Budget, claiming that the funds allocated for Scheduled Castes and Tribes have been misused, and appeasement politics has taken precedence.
The government must answer for these actions, and no new taxes should be imposed on the people in the coming year, he said.
Participating in the Budget debate in the Legislative Assembly on Thursday, Ashoka stated: “This is not a visionary budget; it is an emergency budget. It does not focus on job creation or economic development. The budget includes a poetic reference to giving people a sip of water, but due to a lack of grants for universities, students are asking for poison instead.
“Even Congress MLAs have complained about the lack of funds, with MLA Raju Kage stating that he would commit suicide in the Vidhana Soudha. Anganwadi and ASHA workers are also expressing similar frustrations,” he said.
The capital expenditure stands at 17.8 per cent, while annual debt repayment amounts to Rs 26,474 crore. The revenue deficit is Rs 19,262 crore (0.63 per cent), and the overall debt burden has reached Rs 7,64,655 crore (24 per cent).
During the BJP government’s tenure in 2021-22, Rs 80,641 crore was borrowed, despite the COVID-19 pandemic causing a 50 per cent revenue decline. In 2022-23, the borrowing was Rs 44,549 crore. However, after Siddaramaiah assumed office, the borrowing has surged—Rs 90,280 crore initially, followed by Rs 1,07,006 crore, and now Rs 1,16,000 crore. The total debt now stands at Rs 7,81,095 crore, with CM Siddaramaiah alone responsible for Rs 4,91,000 crore of it, accounting for 63 per cent, he charged.
Capital expenditure has gradually declined over the past two years, and development funding has not been prioritized. Last year, the revenue estimate was Rs 1.89 lakh crore, but the target was not met. This year, the government has set a goal of Rs 2.08 lakh crore, which is unrealistic. The excise department has been given a target of Rs 40,000 crore, indicating an encouragement of alcohol consumption.
“Borrowing is not the issue, but how the borrowed money is used is crucial,” he said.
In 2017, Siddaramaiah, as CM, had stated in the Assembly that loans should be taken according to financial capacity and should be used for asset creation. However, the Congress government is now using borrowed money for political purposes and election promises rather than development. Previously, the CM had opposed using loans for non-developmental expenses, but now he is doing the opposite, Ashoka alleged.
The budget document does not explicitly mention tax hikes. However, after the last budget, sudden tax increases were implemented. When I was in the revenue department, reducing certain taxes generated Rs 1,500 crore in revenue. This time, tax increases are inevitable. Since only 17.4 per cent of the budget is allocated for development, the economic condition will deteriorate, he warned.
As per the budget, 24 per cent of funds should be allocated to the Scheduled Caste and Tribe (SC/ST) communities. Minister Zameer Ahmad Khan has demanded Rs 60,000 crore for Muslims, who constitute 14 per cent of the population. If population-based allocations are to be considered, then the SC/ST population of 24 per cent should receive Rs 98,701 crore. However, only Rs 42,017 crore is being provided, Ashoka stated.
The Planning Commission has previously recommended higher allocations for Scheduled Castes and Tribes. These communities face challenges such as declining gender ratios, literacy rates, infant mortality, lack of vaccination, employment, electricity, drinking water, and land ownership. The government must clarify their current situation, Ashoka demanded.
CM Siddaramaiah responded in the House: “I am committed to earlier stand taken in 2017 that loans should be made for asset creation in the state. In Fiscal Responsibility Act, 2002, they have suggested three criterions. As per the Act, if the state’s economic situation is to be sound, there should be surplus of revenue. The second criterion is fiscal deficit should be less than 3 per cent. The third one, the loans will have be within 25 per cent of the GSDP and then only it can be said that the state’s economy is strong.”
“We could not adhere to one of the criterion of revenue surplus as there is revenue deficit. The revenue deficit was more last year, this year it is Rs 19,262 crore and last year it was Rs 27,000 crore. Next year, we will achieve revenue surplus. Fiscal deficit has to be within 3 per cent and it is 2.91 per cent now. The loans are 24.95 per cent of the GSDP,” he stated.
BJP MLA Arvind Bellad stated that the state has taken Rs 44,000 crore loan outside the budget and it has crossed the limits.
–IANS
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