Kumaraswamy slams Siddaramaiah’s Budget, warns Karnataka heading towards debt trap
Mangalore Today News Network
Bengaluru, Mar 7, 2026: Union Minister H. D. Kumaraswamy on Friday strongly criticised Chief Minister Siddaramaiah over the Karnataka Budget, alleging that the state government’s financial policies were pushing Karnataka towards a serious debt crisis.
Responding to Siddaramaiah presenting his 17th State Budget, Kumaraswamy said that while the milestone might be politically significant for the Chief Minister, the burden of its consequences would fall on ordinary people.
In a post on X, the former chief minister described the budget as “harsh on the ears and heavy on the state,” accusing Siddaramaiah of focusing more on political messaging than financial discipline.
“I listened to the lengthy speech of ‘Slogan’ Ramaiah. While he celebrates presenting his 17th Budget, the people of Karnataka will be forced to bear its fallout,” Kumaraswamy said.
I listened to the prolonged budget speech of “Slogan” Ramaiah. While he may celebrate the presentation of his 17th Budget, the people of Karnataka are left bearing the burden of its consequences. In his pursuit of records, Shri Siddaramaiah has pushed the State’s economy into…
— ಹೆಚ್.ಡಿ.ಕುಮಾರಸ್ವಾಮಿ | HD Kumaraswamy (@hd_kumaraswamy) March 6, 2026
He alleged that the Congress-led government had pushed the state’s economy “into disarray” and criticised Siddaramaiah for repeatedly targeting the Union government during his budget speech.
According to Kumaraswamy, such criticism undermines the spirit of cooperative federalism while attempting to portray the state government’s economic model as successful.
He further alleged that the state administration had become a patronage system for Congress functionaries, claiming that public borrowings were being diverted for political accommodation.
“The people who trusted this government with their votes are now being pushed towards a permanent debt trap through this disastrous Budget,” he said.
Kumaraswamy also stated that concerns about Karnataka’s financial health had already been raised by constitutional and financial institutions.
He pointed out that Karnataka’s share in central tax devolution had increased under the framework of the 16th Finance Commission of India from 3.61 per cent to 4.7 per cent, which he said would bring the state more than Rs 11,000 crore in additional funds.
Despite this, he claimed the state’s fiscal condition was worsening, highlighting the rising public debt and revenue deficit.
Kumaraswamy noted that while the state had presented a Rs 4.48 lakh crore Budget, its outstanding debt had already crossed Rs 8 lakh crore and could approach Rs 9 lakh crore next year.
“Borrowing is not the issue. The real question is how that money is being spent,” he said, alleging that capital expenditure had stagnated while debt-funded spending was being used for “unproductive purposes”.
Union Minister Pralhad Joshi also criticised the Budget, describing it as a “ticking fiscal bomb” and warning that the state government was borrowing even to meet routine administrative expenses.