Bengaluru (Karnataka) [India], September 23 (ANI): Karnataka Bharatiya Janata Party (BJP) leaders on Wednesday staged a protest against the Congress-led Karnataka government at the Kengal Hanumanthaiah statue in Bengaluru, accusing the administration of financial bankruptcy, economic mismanagement, and diverting funds meant for Dalit communities.
Leading the demonstration, leaders of the opposition in both houses of the state legislature mounted a sharp attack on the state government, demanding immediate accountability and resignations over the alleged fiscal crisis.
Leader of the Opposition in the Karnataka Legislative Assembly R Ashoka claimed that developmental work across the state has come to a standstill due to a severe financial crunch and mounting debt.
He further demanded the resignation of Karnataka CM DK Shivakumar for failing to handle the state's finances effectively.
"There is no money for development. We have already taken the loan... Now the finance department openly says this is coming under DK Shivakumar; he is the finance minister. How is it possible?... You have failed to manage the finance department. That's why you have to resign. That is the BJP's demand," Ashoka told reporters.
Simultaneously, Karnataka Legislative Council Leader of Opposition (LoP) Chalavadi Narayanaswamy accused the government of exhausting state exchequers and misusing welfare funds earmarked for Scheduled Castes (SC) and Scheduled Tribes (ST).
Speaking to ANI, Narayanaswamy said, "The government has become bankrupt, but still they are spending the remaining amount like water for no reason, and it is a waste of money. Independence Day was celebrated by the government. But Constitution Day was celebrated by social welfare; why? That is the money kept for the Dalits, SC and STs, for their betterment. But this government is spending that amount on these issues."
A day ago, BJP MLA Dr Bharat Shetty had also 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.
“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. 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. The government is not able to pay salaries to many departments. On top of this, DK has gone to Mangaluru to conduct a Cabinet meeting. 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," Shetty 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.
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 the opposition. (ANI)
BJP stages protest in Bengaluru alleging state govt is "bankrupt", seeks resignation of CM DK Shivakumar over financial mismanagement
