GDP Decline, Financial Crunch, No Focus on Industrial Growth Debt Burden and Inflation Worries Vijayendra

17-3-2025

GDP Decline, Financial Crunch, No Focus on Industrial Growth

Debt Burden and Inflation Worries Vijayendra

Bengaluru: BJP State President and MLA B.Y. Vijayendra has expressed concerns over the rising debt burden of Karnataka, which has increased to ₹7.6 lakh crore following the presentation of the highest-ever budget by the Chief Minister.

Speaking in the Legislative Assembly today, he stated that the Finance Minister has not implemented any measures to reduce the debt burden. He pointed out that committed expenditure and guarantees account for 80% of the budget, leaving insufficient funds for capital expenditure, raising concerns about the state’s development prospects.

The debt continues to rise, and by the end of the 2025-26 financial year, the state government will have to pay ₹45,600 crore in interest. By 2027-28, the interest payment alone will exceed ₹60,000 crore, and the state’s total debt is projected to surpass ₹9 lakh crore, he warned.

Since the Congress government, led by Siddaramaiah, took office, inflation has risen due to price hikes. Compared to other states, Karnataka has the highest inflation rate at 5.03%, whereas

Maharashtra’s is 3.39%, Andhra Pradesh’s is 4.02%, and Gujarat’s is 3.88%. He highlighted that Karnataka currently has the highest inflation rate in the country.

Speaking about GDP growth, he noted that under the previous BJP government in 2022-23, the state’s GDP growth was 14.2%, but under the Congress government in 2023-24, it has dropped to 9.6%. He stressed the need to discuss the state’s worsening economic situation.

He further mentioned that financial deficits have increased since the Congress government took over. The deficit was 2.14% under the BJP government but has now risen to 2.95%. Regarding industrial growth, he criticized the Congress government for its lack of focus over the past 20 months, leading to Karnataka’s industrial growth rate declining to 5.8% in 2024-25.

He claimed that investment proposals exist only on paper with no actual implementation. Due to government inaction over the last 20 months, industrial development has slowed down.

Analyzing the budget, he said it has failed to satisfy any section of the population, including farmers, the poor, women, and youth. He criticized the government for neglecting priority sectors such as education and healthcare.

He also pointed out that the budget does not support the working-class communities, including Madivala, Savita Samaj, weavers, and Vishwakarma communities. He accused the Congress government of betraying these communities despite coming to power under the banner of “Ahinda” (a coalition of backward classes, Dalits, and minorities)

(Karunakar Khasale)

State Media Coordinator

BJP Karnataka