Siddaramaiah rejects charges of excessive borrowing

Chief Minister Siddaramaiah on Saturday rejected the Opposition charge that the State was borrowing excessively and said the debt burden was within the limits prescribed by the Karnataka Fiscal Responsibility Act.

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

He said Karnataka’s GSDP stands at ₹33,05,500 crore. “Therefore, the BJP’s allegation that the State government has borrowed excessively is far from the truth.”

He justified the need to borrow to achieve development as long as the debt burden is within the limits.

Centre’s debts

Referring to the borrowings by the Centre during Prime Minister Narendra Modi’s tenure, Mr. Siddaramaiah said the Union government’s debt stood at ₹218 lakh crore, including the ₹165 crore borrowed during the last 11 years since Mr. Modi assumed 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%, whereas Karnataka’s fiscal deficit is 2.95%, which is within the 3% of GSDP limit prescribed by the law.

Reacting to BJP leader R. Ashok’s criticism that the Budget benefits only one section of the society, Mr. Siddaramaiah said the Budget had been prepared with a focus on social justice. “The Budget aims at the development of the entire State and seeks to provide equal opportunities to people from all sections of the society,” he said.

If given opportunity

On whether he will be presenting the remaining two budgets of the government’s term, Mr. Siddaramaiah said he would 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 the opportunity is given, I will certainly discharge the responsibility,” Mr. Siddaramaiah said.