Siddaramaiah Rejects BJP Charge Of Excessive Borrowing, Cites Fiscal Discipline

Bagalkot: Chief Minister Siddaramaiah on Saturday dismissed BJP’s allegations of financial mismanagement and excessive borrowing as baseless, asserting that the state has maintained fiscal discipline while successfully implementing its guarantee schemes. He accused the Opposition of indulging in a smear campaign out of fear of defeat in the bypolls.

Speaking to reporters on Saturday, Siddaramaiah elaborated on the state’s finances and said the BJP was spreading misinformation and should properly understand the Fiscal Responsibility Act. He explained that under the Act introduced in 2002, the fiscal deficit must be within 3 percent of GDP and total debt should not exceed 25 per cent of the Gross State Domestic Product.

“Our debt stands at 24.94 per cent, which is within the prescribed limit. The allegation that we have borrowed excessively is false,” he declared.

The CM maintained that financial discipline had been upheld.

“No state can borrow indiscriminately. The borrowing limit is fixed by the Union government’s Finance Ministry. I do not know whether the BJP is aware of this or not. The claim that I have borrowed excessively is a blatant lie. We have not violated the norms of the Fiscal Responsibility Act and have maintained financial discipline,” he said.

The Chief Minister also claimed that Karnataka’s economic performance was stronger than that of the Centre. “While the Centre’s GDP growth stands at 7.14 per cent, Karnataka’s growth is 8.1 percent. Which is higher?” he asked.

He further alleged that the Union government’s total debt had increased significantly, stating that while the cumulative debt since Independence and during former Prime Minister Manmohan Singh’s tenure stood at Rs 53.11 lakh crore, it had risen to Rs 218 lakh crore by March 2026. He claimed that Prime Minister Narendra Modi alone had added Rs 165 lakh crore to the debt in 12 years.

The Chief Minister said that despite implementing guarantee schemes, the government had not reduced spending on key sectors.

Turning to the bypoll campaign he expressed confidence in Congress winning both seats in the by-elections, stating that the party was receiving an overwhelming response from the public, beyond expectations.

He said the Congress government’s programmes were designed for the welfare of the poor and had been extended to people across all castes, religions and linguistic groups. Accusing the BJP of opposing the guarantee schemes, he asserted that these programmes were a form of social commitment and an investment in people’s welfare, which also constituted development.

“Development is not limited to roads, bridges and buildings. It also includes providing economic and social security,” he said.

The Chief Minister noted that the BJP had been opposing the guarantee schemes ever since they were announced, with leaders, including Prime Minister Narendra Modi, claiming that the state would go bankrupt. However, he said that over the past three years, guarantee schemes had been successfully implemented and Rs 1.31 lakh crore had been spent on them till March 24, 2026.

He added that expenditure on sectors such as irrigation, public works, rural development, drinking water, policing, and SCSP/TSP schemes had not been reduced. “While Rs 42,000 crore was spent last year, over Rs 44,000 crore is being spent this year. Development works have not been curtailed,” he asserted.