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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Iran attacks oil tanker near Dubai; Trump warns of strikes on energy sites if Hormuz remains shut
Tel Aviv/Washington: Iran attacked and set ablaze a fully loaded crude oil tanker off Dubai on Monday after US President Donald Trump warned that Washington would target Iran’s energy infrastructure if the Strait of Hormuz is not reopened.
According to a Reuters report, the Kuwait-flagged tanker Al-Salmi is owned by Kuwait Petroleum Corporation and was capable of carrying around 2 million barrels of crude. . It was struck in what authorities later described as a drone attack. The company said the incident occurred early Tuesday, causing a fire and hull damage. No injuries were reported and the fire was brought under control, Dubai authorities said .
Oil prices rose briefly following the attack and added to volatility in global energy markets. In the United States, retail gasoline prices crossed $4 per gallon for the first time in more than three years, according to data from GasBuddy, as crude prices moved above $101 per barrel.
Israel said it carried out missile strikes on military infrastructure in Tehran and on sites linked to Iran-backed Hezbollah in Beirut. Explosions were reported in parts of Tehran, with Iran’s Tasnim news agency saying power outages occurred in the eastern Pirouzi district following the blasts.
The Israel Defense Forces said four soldiers were killed in southern Lebanon. In recent days, three peacekeepers serving with the United Nations Interim Force in Lebanon were also killed in separate incidents in the same area.
Iran’s military spokesperson said Tehran’s latest wave of missile and drone strikes targeted US military positions at five bases in the region and sites in Israel. Thousands of troops from the US Army’s 82nd Airborne Division have begun arriving in the Middle East, according to US officials, expanding Washington’s military options even as diplomatic efforts continue.
White House Press Secretary Karoline Leavitt told Reuters Trump wants an agreement with Iranian leaders before a revised April 6 deadline for reopening the Strait of Hormuz, adding that talks were progressing, while public statements from Tehran differed from private communications.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said proposals received through intermediaries were “unrealistic” and maintained that Iran was focused on defending itself.
In a social media post, Trump said that if a deal is not reached soon and the strait is not reopened, the US would strike Iran’s electric generating plants, oil wells and Kharg Island. However, a report in The Wall Street Journal said Trump had told aides he may be willing to end the military campaign even if the strait remains largely closed and address reopening it later. The White House referred to earlier remarks by Secretary of State Marco Rubio that the strait would be opened “one way or another.”
The administration has also requested an additional $200 billion in funding for the conflict, a proposal that faces opposition in the US Congress.
