Unscientific guarantees have swallowed K’taka’s revenue, claims Pralhad Joshi

Bengaluru, Aug 20 (IANS) Union Minister for Food, Public Distribution and Civil Supplies Pralhad Joshi on Wednesday asserted that the Congress-led government in Karnataka has swallowed up the state’s revenue through its five unscientific guarantee schemes.

Speaking to reporters in Delhi, Union Minister Joshi stated: “The Comptroller and Auditor General’s (CAG) report tabled in the state assembly itself has exposed this reality. The report points out that the five unscientific guarantee schemes of the Congress have consumed nearly 15 per cent of the state’s revenue expenditure.”

According to the CAG report, Karnataka, which was once a revenue-surplus state, has now witnessed a shortfall due to these guarantees, leading to financial instability. Joshi remarked that it will take several years for the state’s economy to regain stability.

He recalled that during the 2022-23 financial year, Karnataka was a revenue-surplus state. But now it has turned into a deficit state, causing severe stagnation in development.

Joshi further stated that in the 2023-24 financial year, the fiscal deficit rose from Rs 46,623 crore to Rs 65,522 crore, along with a revenue shortfall of Rs 9,271 crore.

The Union Minister charged that because of the Congress government’s unscientific guarantees, Karnataka’s debt burden has now risen by nearly Rs 63,000 crore. This, he added, has not only reduced capital investment but also hindered developmental works.

Joshi also criticised the government for making life costlier for the public by increasing prices of essentials such as diesel, milk, electricity, metro, and BMTC bus fares.

The Comptroller and Auditor General’s (CAG) report has revealed that the five guarantee schemes implemented by the government of Karnataka accounted for 15 per cent of Revenue Expenditure for the year 2023-24.

It further underlined that to finance guarantees, the Congress-led government has availed Rs 37,000 crore loan more than the previous year and reduced capital expenditure.

The report was tabled in the Legislative Assembly on Tuesday and the details have surfaced on Wednesday.

The CAG stated: “Implementation of the schemes resulted in the increase in growth of expenditure (12.54 per cent from the previous year) which was the contributing factor of Revenue Deficit of Rs 9,271 crore. Consequently, fiscal deficit of the state also increased from Rs 46,623 crore in 2022-23 to Rs 65,522 crore in 2023-24.”

–IANS

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