Bangalore, March 31 Karnataka Chief Minister Siddaramaiah criticised BJP state president B Y Vijayendra’s demand for a “white paper” on the state’s finances, calling it a reflection of his poor understanding of economics and political maturity.
He stated that the allegation that the state is bankrupt stems from the “helplessness, frustration, and jealousy” of BJP leaders who are unable to confront his government politically.
“Mr. Vijayendra’s demand for a white paper on the state’s financial condition reflects his lack of understanding of economics, administrative experience, and political maturity,” Siddaramaiah said.
“Just last month, I presented the budget for this financial year. It is not merely a collection of numbers, but a transparent account presented to the seven crore people of Karnataka. That budget has been discussed and approved by both houses of the Legislature. That itself is our white paper,” he said.
“There has been a detailed discussion on this in both houses of the Legislature. A total of 21 opposition members, including those from Vijayendra’s party, spoke and raised questions, all of which I have duly answered,” Siddaramaiah added.
“If there are still any doubts, I am ready to provide further clarification. I am even prepared for an open debate with you in the upcoming by-elections. Please do not attempt to undermine the integrity of the budget merely for the sake of political rhetoric,” he further said.
Siddaramaiah presented his 17th budget as the State’s Finance Minister on March 6.
Reiterating that claims of the state being bankrupt are unfounded, the chief minister said no department is unable to pay salaries to its employees. “Our government is stable not only economically but also politically. The people of the state are living in peace,” he asserted.
Claiming that Karnataka’s financial position is better than that of the union government led by the BJP, Siddaramaiah said the state’s budget this year stands at Rs 4,48,004 crore, which is Rs 38,455 crore higher than last year, reflecting a growth of 9.4 per cent.
“However, the union government’s budget has grown by only 5.6 per cent compared to the previous year. While the Centre presented a budget of Rs 50.66 lakh crore last year, it has increased to Rs 53.47 lakh crore this year. Our budget size reflects economic progress. If there were an economic slowdown, would such growth have been possible?” he asked.
In 2025-26, while the country’s GDP growth stands at 7.4 per cent, Karnataka’s GSDP has recorded a higher growth of 8.1 per cent, he said, adding, "This clearly reflects the strong economic stability of our government. This year, our GSDP stands at Rs 33,05,500 crore."
Noting that across all seventeen budgets he has presented, he has consistently maintained fiscal discipline, Siddaramaiah said that, as per the Fiscal Responsibility Act, total liabilities must remain within 25 per cent of GSDP, and the State’s stand at 24.94 per cent.
“In contrast, the union government’s liabilities, which should ideally be within 40 per cent of GDP, have reached 55.6 per cent. Which government, then, is truly bankrupt?” he asked.
Urging Vijayendra to first examine the economic condition of BJP-ruled states, the CM said Maharashtra’s debt stands at Rs 11.02 lakh crore, while Bihar’s fiscal deficit is as high as 11.8 per cent of its GSDP, where the BJP is in alliance with JD(U).
Rajasthan and Madhya Pradesh have fiscal deficits of 3.7 per cent of their GSDP, he pointed out, adding that whether it is the BJP-led union government or BJP-ruled states, fiscal distress has become a "defining feature of BJP governance."
Siddaramaiah reiterated his allegations against the Centre for adopting a stepmotherly approach in tax devolution, GST compensation, and grants under centrally-sponsored schemes.
Stating that he has never opposed borrowing, the chief minister said that all developed economies carry significant levels of debt. However, when borrowed funds are invested in infrastructure and economic activities, the resulting direct and indirect returns strengthen the economy, he added.
The union government is also dependent on borrowing to manage its expenditure, he said.
“Compared to March 2014, the Centre’s debt has increased by Rs 165.52 lakh crore by March 2027. When Narendra Modi assumed office, the total debt stood at Rs 53.11 lakh crore; today, it has risen to Rs 218.63 lakh crore,” he added.
“In other words, during his tenure, the debt has increased by around Rs 165 lakh crore. Modi has pushed the country into a debt trap. This year alone, the Centre has borrowed Rs 16.96 lakh crore. As per norms, debt should be around 40 per cent of GDP, but the Centre’s level has reached about 56 per cent,” Siddaramaiah said.
Also asking Vijayendra to look at the debt incurred when the BJP was in power in the State, Siddaramaiah said, "If one carefully examines the financial condition of BJP-led governments at both the Centre and the states, it becomes clear who has pushed the economy towards distress."
“Mr. Vijayendra, before making such irresponsible statements again, please do some homework... Then we can have a meaningful discussion,” he chided.