Siddaramaiah rejects charges of excessive borrowing

Chief Minister Siddaramaiah on Saturday rejected the Opposition’s charge that the state was over-indebted and said the debt burden was within the limits set by the Karnataka Fiscal Responsibility Act.

Speaking to reporters at the helipad in Pillahalli village of Mysuru taluk, Mr. Siddaramaiah said that Karnataka’s debt stands at 24.94% of the Gross State Domestic Product (GSDP), which is within the permissible limit of 25% set in the Act.

He said the GSDP of Karnataka is ₹33,05,500 crore. “Therefore, the BJP’s claim that the State government is over-indebted is far from the truth.”

It justified the need to borrow to ensure development as long as the debt burden was within limits.

Debts of the center

Referring to borrowings taken by the Center during Prime Minister Narendra Modi’s tenure, Mr. Siddaramaiah said the Union government’s debt stands at ₹218 lakh crore, including ₹165 lakh crore borrowed in the last 11 years since Mr. Modi’s assumption of office, and added that the country’s liabilities amount to 55.6% under the provisions of the Act.

He said India’s fiscal deficit is 4.4 per cent, while Karnataka’s fiscal deficit is 2.95 per cent, which is within 3 per cent of the GDP limit prescribed by law.

Reacting to BJP leader R. Ashok’s criticism that the Budget benefits only a section of society, Siddaramaiah said that the Budget has been prepared with a focus on social justice. He said the budget aims at the development of the entire State and aims to provide equal opportunities to people from all sections of society.

If given the opportunity

On whether he will present the remaining two budgets of the government’s term, Mr. Siddaramaiah said he will if the party leadership gives him an opportunity. “The decision of the high command will be final. Breaking records is not an achievement, but if people bless me and given the opportunity, I will definitely fulfill the responsibility,” Mr. Siddaramaiah said.