Amid the by-elections campaign, Karnataka Chief Minister Siddaramaiah dismissed BJP State President B. Y. Vijayendra’s call for a white paper on the state’s finances, labeling it as a lack of economic understanding and political frustration. Siddaramaiah emphasized that the State Budget already provides a transparent view of the government’s financial status, having been debated and approved in the Legislature. He offered to address any remaining doubts through clarification or open debate if needed.
Dismissing claims of financial instability in Karnataka, Siddaramaiah highlighted that all departments can pay salaries without difficulty, affirming the state’s stable economic and political conditions. He criticized BJP leaders for their allegations, attributing them to helplessness and jealousy in countering the government politically. The Chief Minister pointed out key economic indicators, such as the state’s budget for 2025-26 at Rs 4,48,004 crore, showing a 9.4% increase from the previous year, surpassing the Union Government’s growth rate.
Siddaramaiah underscored Karnataka’s strong economic performance, noting a Gross State Domestic Product (GSDP) growth rate of 8.1%, higher than the national Gross Domestic Product (GDP) growth. He highlighted the state’s fiscal discipline, with total liabilities at 24.94% of GSDP, below the prescribed limit, in contrast to the Centre’s higher liabilities. The Chief Minister criticized the Union Government for its treatment of Karnataka in tax devolution, GST compensation, and centrally sponsored schemes, citing revenue losses due to reduced tax share and policy changes post-GST implementation.
Accusing the Centre of neglecting Karnataka’s financial interests, Siddaramaiah pointed out a cumulative loss of over Rs 2 lakh crore post-GST implementation. He criticized the Centre’s borrowing practices under PM Modi, alleging a surge in national debt leading to a “debt trap.” Siddaramaiah also criticized the previous BJP government in Karnataka for inadequate infrastructure and welfare measures despite heavy borrowing, leaving a debt burden of over Rs 5.53 lakh crore. Urging Vijayendra to engage in fact-based debates, Siddaramaiah emphasized the importance of meaningful discussions over political rhetoric.
