Karnataka's finance audit report, prepared by the Comptroller and Auditor General of India, was tabled in the Karnataka Assembly today. The report has raised a few red flags over the mounting financial stress caused by the government's flagship guarantee schemes.
The report revealed that the Karnataka government borrowed nearly Rs 63,000 crore in 2023-24, of which about 15% was spent on guarantees. The break-up of allocations includes:
- Gruha Lakshmi: Rs 16,964 crore
- Gruha Jyothi: Rs 8,900 crore
- Anna Bhagya: Rs 7,384 crore
- Shakti: Rs 3,200 crore
- Yuva Nidhi: Rs 88 crore
According to the CAG, Karnataka's fiscal deficit widened from 46,623 crore to 65,522 crore, while the state's overall debt rose by more than 37,000 crore compared to its net borrowings.
The report also mentions that Karnataka's receipts grew by just 1.86 percent in 2023-24 while expenditure increased by 12.54 percent, mainly due to guarantee schemes.
This mismatch led to a revenue deficit of Rs 9,271 crore, reversing the surplus recorded in 2022-23.
The CAG has warned that this borrowing will raise the State's repayment and interest burden significantly.
The report also pointed out that Capital expenditure also fell by Rs 5,229 crore compared to the previous year, leading to a 68 percent rise in incomplete projects, a trend that could harm Karnataka's future growth prospects.
These findings are likely to intensify politics over the guarantees. The BJP is likely to raise the issue in the ongoing assembly session.
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