The three-year Congress rule in Karnataka has pushed the State from revenue surplus to revenue deficit, MP for Dakshina Kannada Capt. Brijesh Chowta alleged here on Wednesday.

Addressing presspersons, Capt. Chowta said that the Siddaramaiah-led government lacks financial discipline.

Quoting a report of the Comptroller and Auditor General of India on State Finances for 2024-25, Capt. Chowta said that the report said: “...the introduction of five guarantee schemes in 2023-24 shifted the State from a Revenue Surplus to Revenue Deficit in 2023-24 and 2024-25; the deficit is then financed by debt which pushes up the future debt and interest burden, thus creating a loop of indebtedness...”

Capt. Chowta said that the report further said: “typically, borrowings should be used to fund development expenditure. In 2024-25, only 62.12 % of the State’s borrowings were used for this purpose and a significant portion was utilised to cover the Revenue Deficit and repayment of earlier debts.”

He said according to the report, in 2023-24 the revenue grew by 1.8% while the expenditure increased by 12.5%.

The report said that fiscal deficit of the State increased from ₹65,522 crore in 2023-24 to ₹85,030 crore in 2024-25.

“The only achievement of the Siddaramaiah government during the past three years is to push the progressive Karnataka to the debt trap,” he alleged.

He alleged that the State government is showing “total apathy” to complete Union government sponsored projects.

Referring to the progress of the Pradhan Mantri Awas Yojana (Urban) in Karnataka, he said that the State government could built only 3.86 lakh houses of the 6.38 lakh houses sanctioned.

“It is because the State government is unable to contribute its share of funds to built the houses,” he alleged and said the Congress government also does not want the Union government’s projects implemented fully.

Capt. Chowta alleged that the State government has not released ₹800 crores due as incentives to 38 lakh dairy farmers for the past eight months.

He alleged that the Congress is using Karnataka as its ATM.

He also objected to the State government’s move to develop colonies populated by minorities by investing ₹600 crore. The State Cabinet approved this proposal earlier this month. “This will only promote categorisation in society. This is not correct. Even the architect of the Constitution B.R. Ambedkar had opposed such type of categorisation,” Capt. Chowta said.