Siddaramaiah Hits Back At Vijayendra, Says Karnataka’s Budget Is The ‘Real White Paper’

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Bengaluru: Karnataka Chief Minister Siddaramaiah has launched a sharp counterattack against BJP State President B.Y. Vijayendra over his demand for a white paper on the state’s financial condition, calling the move a reflection of “economic ignorance, administrative inexperience and political frustration.”

In a strongly worded statement, the Chief Minister said the state government had already presented its financial position transparently through the Budget tabled last month, which he described as “not merely a bundle of numbers, but an honest account placed before the seven crore people of Karnataka.” He said the Budget, having been discussed and approved by both Houses of the Legislature, itself serves as the white paper the BJP is now demanding.

Siddaramaiah noted that the issue had already been debated extensively in the Assembly and Council, with 21 Opposition members, including BJP legislators, taking part in the discussion. He said all questions raised during the debate had been answered and added that he was prepared to provide further clarification if required. Taking the political attack a step further, he even challenged Vijayendra to an open debate in the by-election arena, while accusing the BJP of trying to undermine the sanctity of the Budget for political rhetoric.

Rejecting the BJP’s allegation that Karnataka is financially bankrupt, Siddaramaiah said the charge stemmed from the helplessness and jealousy of BJP leaders who were unable to politically confront the Congress government. He asserted that no department in the state was facing a situation where salaries could not be paid and maintained that the government was stable both economically and politically.

Highlighting comparative figures, the Chief Minister claimed Karnataka’s financial position was stronger than that of the BJP-led Union Government. He pointed out that Karnataka’s Budget for 2026-27 stands at ₹4,48,004 crore, an increase of ₹38,455 crore over the previous year, reflecting a growth rate of 9.4 per cent. In contrast, he said, the Union Budget had grown by only 5.6 per cent over the previous year.

Siddaramaiah further argued that Karnataka’s economic growth outpaced the national average, stating that while India’s GDP growth for 2025-26 stood at 7.4 per cent, Karnataka’s GSDP growth was higher at 8.1 per cent. He said the state’s GSDP had now reached ₹33,05,500 crore, which, according to him, reflected the economic strength and stability of his administration.

On fiscal discipline, the Chief Minister said his government had consistently maintained responsibility across all 17 Budgets presented by him. Referring to the Fiscal Responsibility Act, he said the state’s total liabilities stood at 24.94 per cent of GSDP, within the prescribed limit of 25 per cent. By contrast, he alleged that the Union Government’s liabilities had risen to 55.6 per cent of GDP, far above the ideal 40 per cent threshold. He also said Karnataka’s fiscal deficit remained within the 3 per cent cap of GSDP, whereas the Centre’s fiscal deficit had reached 4.3 per cent of GDP, above the recommended 4.2 per cent.

Turning the spotlight on BJP-ruled states, Siddaramaiah urged Vijayendra to first examine the finances of states governed by his own party. He cited Maharashtra’s debt at ₹11.02 lakh crore and claimed Bihar’s fiscal deficit was as high as 11.8 per cent of GSDP, while Rajasthan and Madhya Pradesh each recorded fiscal deficits of 3.7 per cent. According to the Chief Minister, fiscal stress had become a defining feature of BJP governance both at the Centre and in states ruled by the party.

Siddaramaiah also accused the Union Government of repeatedly disadvantaging Karnataka through what he called a “stepmotherly approach” in tax devolution, GST compensation and centrally sponsored grants. He pointed out that Karnataka’s share in tax devolution had been cut from 4.72 per cent under the 14th Finance Commission to 3.64 per cent under the 15th Finance Commission, before being revised to 4.13 per cent by the 16th Finance Commission after the state’s protest. He alleged that BJP leaders and MPs from Karnataka had remained silent despite this injustice to a state that contributes heavily to national tax revenues.

The Chief Minister said Karnataka had been facing a revenue deficit since 2023-24 due to the discontinuation of GST compensation and reduced tax devolution. He claimed the state faced a shortfall of ₹30,871 crore in 2023-24 and ₹40,368 crore in 2024-25 compared to projected GST collections, while the reduced share under the 15th Finance Commission had resulted in a further loss of ₹39,500 crore between 2023-24 and 2025-26. Overall, he said, Karnataka had suffered a loss of more than ₹2 lakh crore since GST was introduced in 2017 due to unfair Finance Commission recommendations and the Centre’s refusal to continue compensation.

He also blamed the Union Government’s revision of GST rates last year for hurting Karnataka’s finances, saying monthly GST growth in the state had fallen from around 10 per cent to nearly 4 per cent after the changes. This, he said, was expected to cause a shortfall of around ₹10,000 crore in 2025-26 and ₹15,000 crore in 2026-27.

Defending borrowing as a legitimate economic tool, Siddaramaiah said debt in itself was not a problem if borrowed funds were invested in infrastructure and productive sectors that generated long-term economic returns. He then turned his criticism towards Prime Minister Narendra Modi, alleging that the Union Government had pushed the country into a debt trap. He said the Centre’s total debt had risen from ₹53.11 lakh crore in 2014 to ₹218.63 lakh crore by March 2027, an increase of around ₹165 lakh crore during Modi’s tenure.

The Chief Minister also attacked the previous BJP government in Karnataka, saying it had borrowed heavily during the COVID period without delivering corresponding development. He claimed the BJP administration, despite leaving behind a debt burden of ₹5,53,363 crore in 2023, had failed to provide adequate welfare support, improve roads, expand hospitals significantly or carry out major doctor recruitment.

Concluding his statement, Siddaramaiah said a close examination of the finances of BJP governments at both the Centre and in states would reveal who had actually pushed the economy towards distress. He advised Vijayendra to do his “homework” before making what he called irresponsible statements and said only then could there be a meaningful discussion.