Union Minister Pralhad Joshi blasted the Karnataka government for what he says are “unscientific” guarantee promises that have hurt the state’s economy. He accused Chief Minister Siddaramaiah of blaming the central government for the state’s financial problems after the CM alleged that Prime Minister Narendra Modi is “anti‑Karnataka.”
“We promised half‑baked guarantees that pushed Karnataka into a crisis,” Joshi said. “Once revenue fell, the government blamed the Centre and started a “hate‑politics” campaign against the PM.” He added that the state’s tax hikes—more than 30 items now taxed higher—are squeezing ordinary people, while contractors for development projects are still unpaid.
The minister also slammed the state for using revenue to fund guarantees rather than proper spending. “Karnataka once had surplus revenue,” he said, “but it’s now trapped in an Rs 80,000‑crore debt spiral, with total debt climbing to over Rs 8 lakh crore.” He called the state’s finances a “bankruptcy” caused by corruption and commission rackets.
Joshi contrasted the Karnataka plan with the national picture under Modi. “The NDA has cut taxes on 99 % of goods to zero or five percent, lifting living standards,” he noted. “In contrast, the UPA government had imposed 27 taxes, making life miserable for citizens.”
He cited the 2023‑24 Comptroller and Auditor General report, which shows a Rs 63,000‑crore jump in Karnataka’s debt and a diversion of infrastructure funds to other projects. The Union Minister warned that the state’s poor administration is steering Karnataka toward a severe financial crisis.
The exchange of words underscores the growing tensions between the central government and the state over fiscal management, tax policy, and the sustainability of guarantee schemes.
Source: ianslive
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