Mysuru

Siddaramaiah on Saturday rejected criticism from the Bharatiya Janata Party that the Karnataka budget was debt-driven and favoured only certain sections, asserting that his government had maintained fiscal discipline within the limits prescribed by law.

The chief minister, who also holds the finance portfolio, on Friday presented his record 17th budget in the Karnataka Legislative Assembly with an outlay of ₹4.48 lakh crore.

Speaking to reporters in Mysuru, Siddaramaiah defended the state’s borrowing, saying development requires raising funds while adhering to fiscal norms.

“Let them say how much debt the Centre led by Narendra Modi has taken. Development cannot be achieved without borrowing,” he said.

The chief minister said the government had remained within the limits set by the Fiscal Responsibility and Budget Management Act, 2003.

“The Act says the debt should be within 25 per cent of GDP. Our debt is 24.94 per cent. Is it within 25 per cent or more than that?” he asked, adding that critics should read the law before making allegations.

Siddaramaiah also compared the state’s fiscal indicators with those of the Union government and criticised BJP leaders, including Karnataka opposition leader R. Ashoka.

He claimed the Centre’s total debt stood at ₹218 lakh crore and that ₹165 lakh crore of it had been accumulated over the last 11 years.

The chief minister said Karnataka’s fiscal deficit remained within permissible limits.

“Do you know what our fiscal deficit is? It is 2.95 per cent, which is within the 3 per cent limit of GDP,” he said, noting that the state’s gross domestic product was about ₹33.5 lakh crore.

Rejecting allegations that the budget favoured specific communities, Siddaramaiah said the government was committed to inclusive development.

“We have worked to ensure social justice and provide equal opportunities to everyone — Scheduled Castes, Scheduled Tribes, backward classes and minorities. A budget is meant for the development of the entire state,” he said.

He also alleged that changes in the Goods and Services Tax regime had affected Karnataka’s finances, claiming the state had lost around ₹10,000 crore due to the nationalisation of the tax system.

Siddaramaiah further said that the scrapping of the Mahatma Gandhi National Rural Employment Guarantee Act scheme had created additional financial pressure for the state.

Asked whether he would present two more budgets to reach the milestone of 19, the chief minister said the decision rests with the leadership of the Indian National Congress.

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“If the high command gives me the opportunity, I will present them,” he said, adding that he would abide by whatever decision the party leadership takes.