K'taka budget: Kumaraswamy says people are left to bear burden as CM pushed economy into 'disarray'
Bengaluru (PTI): Union Minister H D Kumaraswamy on Friday hit out at Karnataka Chief Minister Siddaramaiah claiming that while he may celebrate the presentation of his 17th Budget, the people of the state are left bearing the burden of its consequences.
The CM has pushed the state's economy into disarray, he alleged.
Describing the budget presented by Siddaramaiah as "harsh on the ears and heavy on the state", he alleged that once again, the chief minister chose to indulge in unnecessary criticism of the union government.
"In doing so, he (Siddaramaiah) has conveniently ignored the very principles of cooperative federalism while attempting to glorify his own government’s flawed model," Kumaraswamy said in a post on 'X'.
"I listened to the prolonged budget speech of 'Slogan' Ramaiah. While he may celebrate the presentation of his 17th Budget, the people of Karnataka are left bearing the burden of its consequences. In his pursuit of records, Siddaramaiah has pushed the state’s economy into disarray," he alleged.
He accused the state government of effectively turning into a patronage centre for Congress workers, "with public debt being diverted into their pockets".
"For the grave mistake of trusting this government with their votes, the people of Karnataka are now being pushed into a permanent debt trap through this disastrous Budget," Kumaraswamy said.
He said one thing is clear: Karnataka’s economy is sliding towards a "worrying slowdown".
"Beyond the warnings issued by the CAG and the Reserve Bank, the state now faces a far deeper fiscal risk. The days ahead appear even more challenging, and the people of Karnataka will not forgive this Congress government for such mismanagement," he added.
Kumarswamy pointed out that under the 16th Finance Commission framework, Karnataka’s share in central taxes has increased from 3.61 per cent to 4.7 per cent, which will bring over Rs 11,000 crore additionally to the state.
Even the Budget documents themselves confirm that the flow of funds from the Centre has not reduced, he said.
"The growing revenue deficit and the continuous rise in public debt are deeply concerning. The lack of fiscal discipline in grant allocation and the inconsistencies in financial calculations are evident from the Budget papers themselves. Expectations were raised only to deliver profound disappointment," he claimed.
According to him, the state now presents a Budget of Rs 4.48 lakh crore, while the total outstanding debt has already climbed to Rs 8.24 lakh crore.
The debt level has risen from Rs 1.16 lakh crore to Rs 1.32 lakh crore and is almost certain to cross Rs 9 lakh crore next year. The scale of this mounting liability is alarming, he said.
"Borrowing in itself is not the issue, but the question is: what is this debt being used for? If borrowings rise, capital expenditure should rise proportionately," he said.
"Unfortunately, capital expenditure has remained stagnant for the past three years. Instead, loans are being used for indulgence. Over 140 Congress leaders have been granted cabinet and minister-of-state ranks, funded through borrowed money, leading to unproductive expenditure. The unfortunate reality is that future governments will be forced to spend their time merely filling the fiscal crater created by the @INCKarnataka government," he alleged.
Meanwhile, Union Minister Pralhad Joshi described the state budget as a "ticking fiscal bomb", saying it raises serious concerns about fiscal discipline, development priorities and the "misuse of public money" for "political appeasement".
He pointed out that out of a Rs 4.48 lakh crore budget, barely Rs 74,000 crore is allocated for capital expenditure, only 4 per cent increase from last year.
"Even more alarming: The government has admitted a Revenue Deficit of around Rs 22,957 crore (increased from 19,262 crore) meaning Karnataka is borrowing money even to run day-to-day administration. This is financially irresponsible. Karnataka government was a surplus state, Congress government since 2023 (surplus of Rs 13,496 cr)," Joshi said in a post on 'X'.
He further claimed that at the same time fiscal deficit: around Rs 1.02 lakh crore — pushing the state close to the FRBM limit of 3 per cent of GSDP. "Total liabilities: already crossed Rs 8 lakh crore," he added.
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Gold, silver soar as US-Iran deal hopes lift bullion demand
New Delhi (PTI): Gold prices rebounded by Rs 2,900 to Rs 1.55 lakh per 10 grams in the national capital on Wednesday, while silver climbed to Rs 2.54 lakh per kilogram as easing geopolitical tensions triggered a pullback in oil rates, boosting demand for precious metals.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity jumped by Rs 2,900, or nearly 2 per cent, to Rs 1,55,400 per 10 grams (inclusive of all taxes) from Tuesday's closing level of Rs 1,52,500 per 10 grams.
Traders attributed the surge in bullion prices to reports that Washington and Tehran are close to finalising a framework agreement to end months of conflict, raising the prospects of smoother flows through the Strait of Hormuz and easing inflation concerns tied to energy markets.
"Gold rallied strongly on Wednesday as easing geopolitical tensions triggered a sharp reversal in key macro drivers that had recently pressured precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Silver prices also advanced for the third straight session by rising Rs 3,500, or 1.4 per cent, to Rs 2,54,500 per kg (inclusive of all taxes). The metal had settled at Rs 2,51,000 per kg in the previous session, as per the Association.
"The prospect of a diplomatic breakthrough triggered a steep decline in oil prices and the US dollar, easing concerns about inflation while boosting demand for precious metals," Gandhi said.
Globally, spot gold increased by USD 106.15, or 2.33 per cent, to USD 4,663.70 per ounce while silver gained USD 3.40, or 4.68 per cent, to USD 76.24 per ounce.
"Gold witnessed a sharp rally as markets reacted positively to reports that the US and Iran are moving closer to a one-page agreement framework aimed at ending the conflict," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
Despite strong international gains, rupee strength limited the upside in domestic gold prices. The market is now highly focused on final confirmation and execution of the proposed deal, he added.
Any negative surprise or breakdown in negotiations could trigger a sharp sell-off in gold, while a successful agreement and sustained ceasefire could push the bullion prices higher in the near-term, Trivedi said.
