Karnataka's Fiscal Woes: Sitharaman’s Take on Inflation and Mismanagement

Union Finance Minister Nirmala Sitharaman has criticized Karnataka's Congress government for high inflation and poor fiscal management. She attributes the state's economic decline to increased prices of fuel, milk, stamp duty, and poor capital expenditure. Sitharaman also debunked claims of insufficient central funding, highlighting significant allocations under the NDA government.

Union Finance Minister Nirmala Sitharaman on Sunday accused the Congress government in Karnataka of contributing to high inflation and fiscal mismanagement in the state.

Responding to Karnataka Chief Minister Siddaramaiah’s complaints of central neglect, Sitharaman stated that the state's economy has worsened due to hikes in fuel, milk, and stamp duty prices, accompanied by reduced capital expenditure.

Contrasting the BJP's tenure in Karnataka with the current Congress rule, Sitharaman explained that inflation in Karnataka surpassed the national average, rising from 5.4% to 6.1% between June 2023 and June 2024. This, she said, was attributed to various price hikes and a significant increase in open market borrowing.

Sitharaman dismissed allegations of inadequate central funding, citing substantial tax devolution and grants-in-aid during the NDA government’s term. She highlighted the considerable investments in railway projects, smart city initiatives, and road construction in Karnataka.