State faces Rs 12,000 crore deficit ‘burdened’ by guarantees of govt

Bengaluru: It is reported that the Karnataka Government is in financial trouble and there is a shortfall of Rs 12 thousand crore in revenue collection. The government is spending Rs 90 thousand crores on guarantees and subsidies. As there is shortage of money in the treasury, the government is thinking of borrowing for development works.

According to the information provided by senior government officials, there was a shortfall of Rs 12,000 crore at the beginning of the third quarter of the financial year 2024-25. In a recent meeting with the Finance Department, Chief Minister Siddaramaiah instructed the officials to take action and speed up the increase in revenue. Economic consultant Basavaraja Rayareddy said that subsidies and guarantee schemes are burdening the government.

It is estimated that 853 out of every 1,000 people in Karnataka are benefiting from the scheme under Annabhagya Yojana. A government official said that out of a population of 6.5 crore, 4.47 crore people have BPL cards, which is a very serious problem and needs to be re-examined.

Undivided families are getting split up to avail Gruha Lakshmi benefits. Women of a divided family say that we are a separate family and we should be paid Rs 2000 per family. If this continues, the government’s treasury will suffer. So, the authorities have suggested that the government should reconsider the guarantee scheme.