India News | Karnataka: BJP MLA Bharat Shetty Demands White Paper, Alleges Mounting Liabilities and Pending Bills
Get latest articles and stories on India at LatestLY. BJP MLA Dr Bharat Shetty has demanded a white paper on Karnataka's financial position, alleging that the state is facing a cash crunch, mounting liabilities and pending bills. Minister Satish Jarkiholi said Chief Minister Siddaramaiah, who holds the Finance portfolio, could speak about the state's budget. Jarkiholi also said the ED investigation against him and his relatives was underway.
Bengaluru (Karnataka) [India], September 22 (ANI): Karnataka BJP MLA Dr Bharat Shetty on Tuesday demanded that the Karnataka state government issue a white paper on its financial position, alleging that the state was facing mounting liabilities, pending bills and difficulties in meeting financial commitments.
Shetty's remarks came amid reports of an internal note from the Karnataka Finance Department cautioning the government to remain realistic while announcing new schemes and projects. The reported note has raised questions about the state's financial position, spending commitments and the implementation of government programmes.
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Reacting to the alleged Finance Department note, Karnataka Minister Satish Jarkiholi said that Chief Minister Siddaramaiah, who is in charge of the Finance Department, could provide details about the state's budget.
"The CM is in charge of the Finance Department; he can tell about the state's budget," Jarkiholi said.
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Asked about the Enforcement Directorate's raids on him and his relatives, Jarkiholi said, "The investigation is underway."
BJP MLA Bharat Shetty alleged that the state government's Finance Department had issued a circular advising the Cabinet and Chief Minister to be realistic in announcing schemes and projects worth thousands of crores.
"Karnataka government's Finance Department has issued a circular saying that the Cabinet and the Chief minister have to be realistic in their announcements, as they've been announcing schemes and projects worth thousands of crores," Shetty said.
He claimed that the state's fiscal deficit was approaching three per cent and that its revenue liability had reached around Rs 22,000 crore. He further alleged that the state government had exhausted its borrowing capacity and that bills worth approximately Rs 34,000 crore remained pending.
"The Department has said that the State's fiscal deficit is reaching 3%, and the State's revenue liability has come to around Rs 22,000 crores. Karnataka State government has exhausted all its borrowing capacity. Around Rs 34,000 crores of bills are still pending," Shetty said.
The BJP MLA also alleged that several departments were facing difficulties in paying salaries and criticised the government for holding a Cabinet meeting in Mangaluru amid the financial concerns.
"The government is not able to pay the salaries to many departments. On top of this, DK has gone to Mangaluru to conduct a Cabinet meeting," he said.
Shetty linked the alleged financial strain to the drought situation in the state and demanded greater transparency from the government.
"The State is facing a drought situation, for which the state has no money. Karnataka government should issue a white paper on the state's financial health," he said.
The allegations come against the backdrop of Karnataka's budget projections for 2026-27. According to an analysis by PRS Legislative Research, the state's fiscal deficit is estimated at Rs 97,448 crore, or 2.9 per cent of its Gross State Domestic Product (GSDP). The revenue deficit is projected at Rs 22,957 crore, equivalent to 0.7 per cent of GSDP. The state has budgeted total borrowings of Rs 1.32 lakh crore for the financial year.
The Finance Department's reported caution over new spending commitments comes amid concerns about funding requirements, revenue mobilisation and expenditure pressures. A report by India Today on Tuesday said the department had advised the government to exercise caution over new schemes and projects, while financial pressures were affecting expenses, salary disbursements and subsidy payments.
Shetty also accused the state government of failing to address the drought situation and alleged corruption in the administration.
"Karnataka is reeling under the drought and also seeing corruption. The state of affairs in Karnataka is such that a Cabinet minister himself is saying it is okay for officers to demand money, and if your work is done, you should give the money to him respectfully. This is the state of affairs in Karnataka," he said.
The allegations regarding corruption and the reported statements about payments to officials have not been independently established in the material provided.
The BJP's demand for a white paper comes amid a wider political debate over Karnataka's spending commitments, welfare schemes and the government's ability to finance new announcements. Opposition leaders have also recently raised questions over the funding of major packages and pending payments.
The state government's budget projections, however, place the targeted fiscal deficit for 2026-27 below three per cent of GSDP, while the Finance Department's reported advisory concerns the need for fiscal caution and realistic spending commitments.
The government is yet to respond in detail to all the specific allegations raised by Shetty regarding pending bills, borrowing capacity and salary payments. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)