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Karnataka tops as borrower among five southern states

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Karnataka tops as borrower among five southern states


Bengaluru: Karnataka is expected to borrow ₹48,000 crore in January-March period, the highest among the five southern states, as the Congress regime struggles to support the five flagship guarantee schemes amid the weight of unbridled government expenditure. The state government would raise open market loans of ₹4,000 crore every week over 12 weeks.

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Chief minister Siddaramaiah on Sunday said he would present the budget in March. In his budget speech in February, last year, the CM had projected open market loans at ₹96,840 crore in 2024-25 from what was ₹44,549 crore in 2022-23.

Karnataka has confirmed its participation in the weekly auctions every week, pegging its weekly need of debt at ₹4,000 crore. While the RBI expects the total borrowing by all states at ₹4,73,477 crore, Karnataka’s share makes up for more than 10%. The southern state was the top loan seeker in the Oct-Dec quarter too with its targeted open-market borrowing of ₹55,000 crore.

Deputy Opposition leader Arvind Bellad (BJP) has expressed alarm that the Congress was recklessly pushing the state towards financial ruin. “Where is this money going? Not into industries: they’re leaving for other states. Not into development-there are no visible works to justify this debt.”

Half of the borrowings, the BJP leader said, were going for servicing the past loans. The high debts were a ticking bomb for the state’s economy. “How long will the people suffer while the government prioritises populism over progress?” Bellad said.



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