Karnataka heading towards bankruptcy: BJP demands white paper on state’s financial condition

Mangalore Today News Network

Bengaluru, February 19, 2025: The BJP on Wednesday demanded that Chief Minister Siddaramaiah present a white paper on Karnataka’s financial condition before tabling the state budget on March 7.

BJP state president B Y Vijayendra alleged that Karnataka was heading towards "bankruptcy" due to the financial burden of the five guarantee schemes introduced by the Congress government.

These schemes include ’Gruha Jyothi’, which provides 200 units of free electricity to every household, and ’Gruha Lakshmi’, which promises Rs 2,000 per month to every woman heading a family. Under ’Anna Bhagya’, every member of a BPL family receives 10 kg of rice per month.

Meanwhile, ’Yuva Nidhi’ offers a financial allowance of Rs 3,000 to unemployed graduates and Rs 1,500 to unemployed diploma holders for two years, specifically for those aged 18-25. The ’Shakti’ scheme allows women in Karnataka to travel for free on government-run non-luxury buses within the state.

Vijayendra also claimed that the state-owned Karnataka State Road Transport Corporation (KSRTC) was on the verge of closure due to financial mismanagement.

"The people of Karnataka are paying a heavy price for the free guarantees promised by the Congress government over the past two years," he said at a press conference.

Vijayendra claimed that the property guidance value had increased by 30 per cent, property registration fees had risen by 600 per cent, Bangalore Metro Rail fares had gone up by 50 per cent, and milk prices had surged by 15 per cent.

The Shikaripura MLA alleged that the state government had yet to clear dues amounting to Rs 7,000 crore owed to KSRTC.

"Because of their (Shakti) guarantee, the state government which is responsible for paying Rs 7,000 crore to KSRTC has not yet cleared the dues. As a result, KSRTC is on the verge of closure. This is the harsh reality," Vijayendra claimed.

"The financial situation of Karnataka is going from bad to worse, despite the state government having taken loans amounting to Rs 1.19 lakh crore in the past two years," he alleged.

He further claimed that state Energy Minister K J George had stated that the Public Works Department, the Irrigation Department, and other government departments in Karnataka had not paid their electricity bills, with total dues reaching around Rs 6,000 crore.

"Because of the decisions taken by the state government, Karnataka is clearly heading for bankruptcy," he charged.

He further alleged that never in Karnataka’s history had the state been in such a dire financial condition.

"The Chief Minister, who will be presenting his 16th budget on March 7 should explain to the people of Karnataka the true financial situation of the state. We demand that Siddaramaiah release a white paper on Karnataka’s financial condition," Vijayendra said.

He criticised the Chief Minister for blaming the Centre for the recent hike in Metro Rail fares.

Vijayendra alleged that no other Metro Rail Corporation in the country had implemented such a hike, making Bangalore Metro Rail the "costliest metro ride in India".

Asked about the action taken against dissident Vijayapura MLA Basanagouda Patil Yatnal, he said the central leadership had already served him a notice, to which he had responded.

"The senior party leaders will decide the next course of action. The central leadership is aware of the situation and will address it," Vijayendra said.

He added that the party needed to present a united front, setting aside differences to take on the ruling Congress in the state.