Particle.news
Download on the App Store

Karnataka Budget Draws BJP Fire Over Rising Borrowing, Third Straight Revenue Deficit

During the Assembly debate, B.Y. Vijayendra accused the Siddaramaiah government of using debt to cover routine expenses rather than investing in development.

Overview

  • State BJP chief B.Y. Vijayendra called the 2026–27 budget a debt trap and a bundle of lies during the Legislative Assembly discussion.
  • Official figures show proposed borrowings of ₹1.32 lakh crore for 2026–27 and a revenue deficit of ₹22,957 crore, the third consecutive shortfall.
  • He claimed total liabilities could exceed ₹8 lakh crore by next year, warning of a heavier interest burden on the state.
  • Citing the Water Resources Department, he said a near-flat ₹22,430 crore allocation would see about ₹8,500 crore go to salaries and ₹4,400 crore to interest, leaving roughly ₹9,290 crore for capital works.
  • He warned partially completed projects need nearly ₹90,000 crore to finish and could cost about ₹1.25 lakh crore if funding is delayed, while also alleging delayed local elections cost roughly ₹20,000 crore in grants, unfilled vacancies saved ₹15,000 crore at the expense of jobs, and 144 people were given Cabinet status with monthly costs of ₹3–3.5 lakh each.