Ahead of the presentation of his 16th State Budget on March 7, Karnataka Chief Minister Siddaramaiah’s administration stated that the upcoming budget would be predictable and lacking in surprises. Congress spokesperson BL Shankar remarked, “The guarantees and various developmental initiatives will be upheld. We intend to maintain the status quo. The necessary resource mobilization has already been carried out, and all programs designed to enhance the lives of ordinary citizens are in place. There will be no unexpected changes this time.”
The state government is currently facing challenges in balancing the budget, particularly due to commitments made in its election manifesto. This difficulty has led to significant price increases in various sectors.
In an open letter to Siddaramaiah, BJP State President BY Vijayendra urged the government to exercise fiscal prudence. He pointed out that the advantages of guarantee schemes had not effectively reached their intended beneficiaries and noted that over the past two years, the Chief Minister has increased the state’s liabilities by approximately ₹2 lakh crore, raising concerns over escalating debt levels. Vijayendra emphasized that borrowed funds should be allocated for capital expenditures rather than for recurring expenses.
The BJP has also criticized the recent increases in bus and metro fares, alongside rising prices for milk, fuel, and other essential goods.
Earlier in January, Deputy CM DK Shivakumar indicated that he had directed officials to evaluate potential water tariff hikes, although a decision remains pending. He justified the proposed increase by highlighting that there had been no adjustments since 2014, resulting in the Bangalore Water Supply and Sewage Board (BWSSB) incurring annual losses of ₹1,000 crore.
In response to recent fare hikes that drew criticism, the Bengaluru Metro Rail Corporation Ltd (BMRCL) announced that their initially proposed fare increase—of up to 100%—would be reduced by 30%, capping the maximum fare increase at 70%.
Additionally, the Karnataka cabinet approved a 15% fare increase for four state-operated bus corporations, effective January, due to rising operational expenses. This increase was projected to generate an additional revenue of ₹74.85 crore per month for the Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North West Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC).
Animal Husbandry Minister K Venkatesh acknowledged the pressure from farmers demanding a ₹10 increase per litre in milk prices, with a final decision yet to be determined.
BJP Spokesperson MG Mahesh stated, “Under the guise of implementing guarantees, the state government is raising prices and indirectly burdening the populace. They misused approximately ₹25,000 crore and took ₹11,000 from the Scheduled Castes Sub-Plan (SCSP) and Tribal Sub-Plan (TSP) last year. We hope they will avoid touching the SC/ST fund allocations in this upcoming budget. The Siddaramaiah administration has also accumulated significant debt, leaving little chance for clearance. If taxes are allocated to salaries and other expenditures, how can there be any development? This budget is expected to hover around ₹4 lakh crore, and while there is typically a surplus of ₹1 lakh crore, this now seems improbable. Siddaramaiah, who has presented 16 budgets to date, needs to craft at least a growth-oriented and people-centric budget this time.”
