Mysuru (Karnataka), March 7 Karnataka Chief Minister Siddaramaiah said on Saturday that the allegation that the state government has excessively increased borrowing is far from the truth and maintained that the objective of this year’s Budget is to provide equal opportunities to people from all sections of society.
Speaking to the media at the helipad in Pillahalli village, he said the Budget aims at the overall development of the state and seeks to ensure equal opportunities for all sections of society.
Responding to criticism from the BJP over the Budget, Siddaramaiah said borrowing had also increased under the tenure of Prime Minister Narendra Modi and that development is not possible without borrowing. He added that the state’s borrowing remains within the limits prescribed under the Fiscal Responsibility Act.
“According to the Act, borrowing should be within 25 per cent. Our borrowing stands at 24.94 per cent, which is within the prescribed limit,” he said.
He added that the Centre’s total debt stands at Rs 218 lakh crore and that since PM Modi assumed office, the Central government has borrowed Rs 165 lakh crore.
“This amounts to about 55.6 per cent as per the provisions of the Act,” he said.
Siddaramaiah further said India’s fiscal deficit is 4.4 per cent, whereas Karnataka’s fiscal deficit is 2.95 per cent, which is within the 3 per cent limit of the state’s Gross Domestic Product prescribed by law.
Karnataka’s GDP stands at Rs 33,05,500 crore, he added.
“The BJP’s allegation that the government has taken excessive loans is far from the truth. Borrowing has been done within the limits prescribed under the Fiscal Responsibility Act,” the Chief Minister said.
Responding to criticism by BJP leader R. Ashoka that the Budget is limited to a particular section, Siddaramaiah said the Budget has been prepared with a focus on social justice.
“This Budget focuses on social justice and aims at the overall development of the state. It seeks to provide equal opportunities to all sections of society,” he said.
The Chief Minister also alleged that the state has suffered a loss of Rs 10,000 crore due to the Centre not releasing funds that rightfully belong to the state. He said the revision of GST rates by the Central government has caused the loss.
Siddaramaiah also said that if the party high command gives him an opportunity, he will present the next two Budgets as well.
“The decision of the high command will be final. Breaking records is not an achievement. But if the people bless me and I get the opportunity, I will certainly discharge my responsibilities,” he said.
Union Minister for Food, Consumer Affairs and Public Distribution Pralhad Joshi criticised the 17th Budget presented by the Chief Minister, stating that its only distinction is its large size of Rs 4.48 lakh crore while also setting records in terms of rising state debt and fiscal deficit, and appearing to be driven by “vote bank” considerations.
Referring to the fiscal situation, Joshi said the Budget shows a fiscal deficit of Rs 97,449 crore and a revenue deficit of Rs 29,957 crore.
He alleged that Siddaramaiah, who was earlier called “Lekkaramayya” — a reference to his reputation for financial management — has instead placed a debt burden of Rs 1.32 lakh crore on the state.