Karnataka Congress faces challenge of development works getting stalled at cost of freebies

Bengaluru, Jun 2 (IANS); Karnataka Congress government which is all set to announce five guarantee schemes promised during elections is facing paucity of funds for the development activities in the state.

The experts have warned that due to the pressure on the economy by the freebies, the state might lose its edge over other states in terms of competitiveness.

The freebies also threaten to challenge the fiscal and economic discipline of the state which is intact almost during the rule of all governments in the state. Karnataka imposes the highest stamp duty already on land compared to neighbouring states, say experts.

Minister for Law and Parliamentary Affairs H.K. Patil on Friday stated that the state government would be burdened by the implementation of five guarantee schemes. However, he maintained that the poor class will benefit from the schemes.

The five guarantees, 10 kilograms of free rice to every individual of BPL family under Anna Bhagya scheme; Rs 2,000 per month allowance for woman head of family under Gruha Laxmi scheme; Rs 3,000 allowance for unemployed graduates and Rs 1,500 for unemployed diploma holders for two years under Yuva Nidhi scheme; free bus travel for women; 200 units of free electricity under Gruha Jyothi scheme are going to cost Rs 55,000 crore to Rs 60,000 crores with conditions. They are going to cost Rs 1.03 lakh crore if given without conditions, say sources in the Finance department.

The Karnataka state budget outlay is Rs 3.09 crores. If the government wants to implement freebies with conditions it's going to cost one third of the budget cost.

The sources in the Finance department explain that it is impossible in the present circumstances to fulfil the obligations with going for loans. The state has Rs 5.64 lakh crore as loans.

Further, the state government can't hike the GST tax as it will have to be done through the GST Council and it will take time. The sources explain that the Congress government is planning to mobilize revenues through the real estate sector, advertisement policy, rising the land guidance value, stamp duty. Chief Minister Siddaramaiah is working out in a way that no further tax is imposed on taxpayers.

There are 1.31 crore BPL card beneficiaries in the state and 32.40 lakh APL card holders. 57 lakh women are beneficiaries of social security schemes such as widow pension and others already. The families having an annual income of less thanARs. 17,000 in urban areas and less than Rs. 12,000Ain rural areas will be considered below the poverty line.

Former Chief Minister Basavaraj Bommai has written a letter to the Chief Minister Siddaramaiah and asked him not to cut down on other pro-people schemes implemented earlier at the cost of freebies. "It is the duty of the responsible government to continue all the development projects of all the departments in view of the development of the state. The government should commit to the expenditures and give a public statement in this regard," he mentioned.

Aam Aadmi Party (AAP) Karnataka President Prithvi Reddy had written a letter to Siddaramaiah and Deputy Chief Minister D. K. Shivakumar, inviting them to visit AAP-ruled Delhi and conduct a study regarding the implementation of guarantees.

In separate letters written on Saturday congratulating the CM and DCM, Prithvi Reddy said, "When the Aam Aadmi Party introduced revolutionary changes in the areas of electricity, water, youth welfare, women empowerment schemes, and revolutionised education, health, we were asked, "How can they be tackled?".

Today, it is a matter of pride that the AAP model of governance has not only been successfully implemented in Delhi and Punjab, but other states and political parties are emulating it," he said.

"Aam Aadmi Party's welfare schemes like free electricity, free bus travel, financial assistance to women and youth unemployment benefits were promised by the Congress party. We are ready to share our experiences and knowledge in successfully implementing these projects for the benefit of the people of our state," he explained.

Siddaramaiah earlier maintained that implementation of all schemes would cost Rs 50,000 crores a year. The budget size of Karnataka is Rs 3.1 lakh crore and mobilizing the funds is not going to be a difficult task, he maintained. "I have presented seven budgets in the assembly. I am very much aware of finances," he said.

"When we are spending Rs 56,000 crore as interest every year, can't we spend Rs 50,000 crore on our people," he wondered.





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Comment on this article

  • Raj, Bengaluru

    Sat, Jun 03 2023

    Who cares about development.lour only wish is to make sure Rahul Gandhi become PM. We don't care about economy.

    DisAgree Agree [1] Reply Report Abuse

  • KS Mayya, Mangalore/Bangalore

    Fri, Jun 02 2023

    Freebies should be given to those who deserve. It took several years to digest what Manmohan Singh propsed to Indian economy which was buried deep in Nehruvian socialism. We went bankrupt and had to be on IMF's whims and fancies to do away with fertilizer and LPG and very many subsidies. Now Congress has reinvented Nehru's version of socialism bordering with communism to once again bankrupt government coffers. It is not Challenge, it is intentional suicide and stab in the back of Karnataka voters. There are no free lunches. Somebody will have to pay. We are not super power yet like America to print our currency in the hope that world will finance our extravaganza.

    DisAgree [9] Agree [25] Reply Report Abuse

  • Ravi, Mangalore

    Sat, Jun 03 2023

    I would go with freebies rather than break my country based on religion. Several countries are nowhere as religion was placed before their countries devolopment.wake up my friend.

    DisAgree [3] Agree [5] Reply Report Abuse

  • Pavan, Mlr

    Sat, Jun 03 2023

    Gobijis betti bagya for chor Gujjus is master stroke.... 😂

    DisAgree [3] Agree [2] Reply Report Abuse

  • PeterDsouza, Mulki,NewYork,USA.

    Fri, Jun 02 2023

    Freebies given by the congress party will definitely help spur growth in Karnataka. The 2000 rupies can be used to buy some things which the family needs. When you go and buy things the shopkeeper will have business. Similarly free bus travel for women encourages them to travel to different places and there too she will spend money to buy food or drinks. In other words it will create economic activity.

    DisAgree [29] Agree [15] Reply Report Abuse

  • John Tauro, M'lore

    Sat, Jun 03 2023

    What kind of growth you think it will have on the economy? The meager Rs.2000/- given to women will be spent on their basic necessities, hardly enough to live a dignified live. Instead of cooking oil she may buy ghee. Will she be able to spend on vehicles or electronics? Further she will be encouraged to travel more without paying a single paisa to KSRTC which is already running into losses. At least here they could have promised tickets and monthly passes at concessional rates for ladies and all students. You can expect development, investment and industrial growth on such freebies. We are still far behind USA in terms of growth and development.

    DisAgree [1] Agree Reply Report Abuse

  • Charles D'Mello, Pangala

    Fri, Jun 02 2023

    Development of removing all the tar and resurfacing them is not required. Jut fill the pot holes and that is enough.

    DisAgree [17] Agree [8] Reply Report Abuse

  • Dev, Mangalore

    Fri, Jun 02 2023

    Central govt is spending Rs 71 lakhs per day on ads since 2014 in print media alone, how much on other media isn't available, to market Brand Modi which is our Tax Money. This should be paid back to people who had earned it. 1.5 lakh crores are due to our state by center which is our GST dues, when we receive there won't be any stoppage of development works. The guarantee money in people's hands will create more demand for products and services as well as savings which will result in more Taxes which will pay for more guarantees money and more employment will be created as economic activities pick up, it is WIN WIN SITUATION for ALL.

    DisAgree [25] Agree [14] Reply Report Abuse

  • John Kuwait, Kudupu/Mumbai

    Fri, Jun 02 2023

    This is the only way to topple the government at centre other states opposition parties should follow Karnataka model

    DisAgree [22] Agree [6] Reply Report Abuse

  • myna, mysuru

    Fri, Jun 02 2023

    Freebies given to people including women will end up putting money into the hands of the people which will trigger demand for goods. Economic growth will spurt. Wait and Watch. Paper tigers should not keep ranting that the development works will be stalled. So far concentration was to appease the rich and the mighty with super fast trains and Highways with exorbitant toll fees which the poor couldn't afford. 6-lane and 10-lane highways can wait. It's sufficient if the State Government can concentrate on providing roads to villages and have good roads without potholes in the existing roads. People will be happy.

    DisAgree [30] Agree [21] Reply Report Abuse

  • Gautam Das, Bangalore

    Fri, Jun 02 2023

    Congress guarantees and benefits are itself part of development and many more will come which BJP has terminated like Indira Canteen etc etc…..

    DisAgree [16] Agree [27] Reply Report Abuse

  • RAKESH, mangalore

    Fri, Jun 02 2023


    DisAgree [24] Agree [22] Reply Report Abuse

  • mohan prabhu, mangalore/canada

    Fri, Jun 02 2023

    Do not worry about freebees; Congos will cut corners somewhere, somehow; gutting unnecessary works. Besides, freebees have a ripple effect; people getting the freebees do not hoard the money in the bank. They spend on things that they need, and that boosts the economy.... and the economy creates more jobs ... and ... and ... more and more, until the ripple has its course.

    DisAgree [12] Agree [30] Reply Report Abuse

  • Tukaram, Thirthalli

    Fri, Jun 02 2023

    Hope all guarantees will reach to the right indivduals without any middle men are trying to grab from poor people. No fake identity holders take advantage of it.

    DisAgree [4] Agree [21] Reply Report Abuse

  • Marol, Udupi

    Fri, Jun 02 2023

    Need not implement all the schemes together. Most of the benefits go to the same people. Thank you and God bless each and every one of us.

    DisAgree [8] Agree [9] Reply Report Abuse

  • real kujuma, kodial

    Fri, Jun 02 2023

    development works will go on..just tighten the screws on corruption...everything will fall in place...sidda knows how to handle things...those who not voted for Congress just be mum...as we have kept mum for last five years of totally mindless rule of the blue j pigs

    DisAgree [66] Agree [40] Reply Report Abuse

  • Daniel, Mangalore

    Fri, Jun 02 2023

    Give freebies God will provide rest, Developement works only absolutely needed. Better check with Delhi, Punjab how they manage. Looks like loans are already neck deep that's why opposition, previous commission party, forcing for early disbursement of freebies. Their Loans may be commission taken or for covid free injections given ?

    DisAgree [38] Agree [20] Reply Report Abuse

  • AD, Mangalore

    Fri, Jun 02 2023

    Stop all aid to so called 'chariatable' trusts of variius religious, caste , language promtion, minority, majority, cultural organisations. All officials in so called trusts siphon off government funds fir thier own personal development. Then Siddaramaih will have enough and more funda for his guarantees which aid people directly.

    DisAgree [16] Agree [34] Reply Report Abuse

  • Cynthia, Dk

    Fri, Jun 02 2023

    Well said.....beautiful comment. Govt should take immediate actions in the above said comment.

    DisAgree [2] Agree [1] Reply Report Abuse

  • Keshav, Uppur

    Fri, Jun 02 2023

    Sir, Almost nearing one month passed..still we are discussing on guarantees when will other works of state starts. How unemployment will be solved.

    DisAgree [33] Agree [72] Reply Report Abuse

  • real kujuma, kodial

    Fri, Jun 02 2023

    seems you are a nagpur gulam...why did you not make any noise when pumpwell flyover took 10 years..when kerosene was not given to fishermen..when rice was not supplied for ration for many months? your god in delhi promised to bring back black money nine years ago..did he bring back? did he provide two crore jobs as promised? Congress is doing the best....wait and dont blabber.

    DisAgree [78] Agree [64] Reply Report Abuse

  • Sameer, Riyadh

    Fri, Jun 02 2023

    Modiji promised 2 crore jobs every year. So far 18 crore of Indians got jobs ;) ;) ;). You are late. BJ pee IT Cell always has vacancies for 2 Rs per tweet.

    DisAgree [50] Agree [38] Reply Report Abuse

  • Sameer, Riyadh

    Fri, Jun 02 2023

    @ Keshav, Uppur, Forgot to mention...to get recruited in BJ Pee IT cell there is a 'catch'. You need to sell your conscious, common sense and be a hardcore andh bhakt. You will be receive intensive training from Nagpur whatsapp university ;) ;) ;). Modiji also gave an alternative.....Forgot? Pakoda....does it ring bells?

    DisAgree [46] Agree [36] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Jun 02 2023

    @keshav, uppur, good to c u, as u have got speaking rights after Congress victory. when da bjp was in power u never asked any questions with dem

    DisAgree [48] Agree [40] Reply Report Abuse

  • Satya, Mangalore

    Fri, Jun 02 2023

    Just to correct you, it is 20 days since the results were declared and only 2 weeks since the new CM took oath and less than a week since the new Ministers took theirs. When a new tenant enters the house occupied by a previous tenant, he firsts does all the cleaning and setting before occupying the house. When your patience has not been exhausted even after 9 plus years on the promise of 2 crore jobs, I believe you can wait for a few weeks for this government to deliver on its promises. I believe you have been taught in primary school that HASTE MAKES WASTE. So have a little patience. Sabar ka pal meeta hotha hai.

    DisAgree [11] Agree [21] Reply Report Abuse

  • Diaz, UAE

    Fri, Jun 02 2023

    Well Said.

    DisAgree [11] Agree [13] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Jun 02 2023

    Explain to us, the daijiworld web portal readers/commentators, what developmental works are carried out by the BJP in their nearly 4 years of tenure!? Corruption of 40%?!

    DisAgree [16] Agree [20] Reply Report Abuse

  • Rajesh, Mangalore

    Fri, Jun 02 2023

    Whom did you vote for?

    DisAgree [9] Agree [10] Reply Report Abuse

  • Rajesh, Mulki

    Fri, Jun 02 2023

    Oh one month. Too long......very sad

    DisAgree [6] Agree [3] Reply Report Abuse

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