On Day 1, Karnataka Cabinet clears 5 promises, to cost Rs 50k crore per year

The five guarantees are: provision of 200 units of free power to below-poverty-line homes, Rs 2,000 per month allowance to the women head of households, Rs 3,000 for graduates unemployed for up to two years after graduation and Rs 1,500 for unemployed diploma holders, 10 kg of free rice to all members of BPL homes, and free bus travel for women.

The Cabinet comprising CM Siddaramaiah, Deputy CM DK Shivakumar and eight ministers who were sworn in Saturday afternoon met a few hours later to decide on the road map for the five guarantees. “We have given approval for all these schemes. I have asked for issuance of orders. We have sought details of the schemes and the financial implications. We will look at all of it and will implement the guarantees irrespective of the financial burden. It will be implemented soon after the next week’s Cabinet meeting,” Siddaramaiah said.

“In July we will be presenting our budget and the size will be increased from Rs 3.10 lakh crore to Rs 3.25 lakh crore. We will try to collect Rs 15,000 crore of revenues through strict collection of taxes. We will cut down on wasteful expenditure and reduce borrowings and this will reduce payment on interest on loans. If we take all measures that are available to us I do not think it is impossible for our government to raise Rs 50,000 crore in a year,” he said.

Extending his wishes in English and Kannada, Prime Minister Narendra Modi said in a tweet, “Congratulations to Shri @siddaramaiah Ji on taking oath as Karnataka CM and Shri @DKShivakumar Ji on taking oath as Deputy CM. My best wishes for a fruitful tenure.” Responding, Shivakumar thanked him. “Please support us in our effort to make Karnataka safe, beautiful and strong. Thank you again.”

Talking about the extra expenditure on the new schemes, Siddaramaiah said, “The interest we are paying on debt at present for the year 2023-24 is Rs 56,000 crore. When we are paying such a high amount as interest on debt, why can we not allocate Rs 50,000 crore per annum for the benefit of the poor, the common man, farmers, and women.”

Siddaramaiah alleged that it was the previous BJP government that pushed Karnataka into a debt trap by doubling the statess total liabilities from the range of Rs 2.42 lakh crore when the Congress was in power in 2018 to Rs 5.64 lakh crore at present.

“From Independence to the end of March 2018 the debt of the state was Rs 2.42 lakh crore. Since the BJP came to power the debt has risen to Rs 5.64 lakh crore. Along with the Kumaraswamy tenure (2018-19) the debt has increased by Rs 3.20 lakh crore in five years. This year alone the state debt is Rs 78000 crore,” Siddaramaiah said.

“When Manmohan Singh left office in 2018 the debt of the country was Rs 53.16 lakh crore. This year it is Rs 155 lakh crore. From the time of Independence to the time of the exit of Manmohan Singh the debt was Rs 53.16 lakh crore. In nine years under Narendra Modi the debt has risen by Rs 103 lakh crore,” the Karnataka CM said.

He accused the BJP government at the Centre of not giving the state its due share of revenues from taxes. “In my view the allocation from the centre under the 15th finance commission should have been Rs one lakh crore. We have not been provided justice under the 15th finance commission and as a result there will be only Rs 50,000 crore for the state,” he said.

“In the 15th Finance Commission’s interim report the share of special assistance allotted to Karnataka is Rs 5,495 crore. This was not collected by the state government at all. There was no greater injustice done to Karnataka,” Siddaramaiah who is past finance minister of the state said in his maiden press conference at the start of his second tenure as CM.

Siddaramaiah indicated that around Rs 1,200 crore per month will be needed to provide 200 units of free power to homes and that the cost of other schemes was still being worked out.

He referred to the 10 kg free rice scheme for BPL families as redux of the Anna Bhagya scheme implemented by the Congress under his watch between 2013-2018 which had been reduced from 7 kg to 4 kg by the BJP government. “Graduates who have been unemployed for two years as of this year will get Rs 3,000 per month starting from this academic year and this scheme is called Yuva Nidhi. There is also Rs 1,500 for diploma holders who are unemployed,” he said.

“Finally, women who use government buses for commuting will be given free passes. This will be specific for people of Karnataka. People from Tamil Nadu will not be eligible. (Not in luxury buses). We will come out with details soon in the next cabinet meeting,” he said.

The Congress government would also revive Indira Canteens that provide low-cost food which were being phased out by the BJP. “We have sought details of Indira canteens and we will revive all of them,” the Karnataka CM said.

“We should be accountable. We cannot give money to anybody on the street. We have to identify the beneficiaries of the scheme for women, who are the graduates and the people who will get free power,” Deputy CM D K Shivakumar said regarding the delay in the launch of the schemes despite the Congress saying it would kick off as soon as it is in power.

The Congress government also decided to convene a meeting of the new legislative Assembly next for oath taking by the new members since the tenure of the current Assembly, the 15th Assembly, is to end on May 24.

“On Monday, Tuesday and Wednesday we are calling for the legislature. The pro tem speaker will administer the oaths to the new Assembly members. The term of the current legislature ends on May 24. In the same legislature session, we will elect a full-term speaker,” Siddaramaiah announced after the Cabinet meeting.