MANGALURU, JULY 12 :  Karnataka Chief Minister Siddaramaiah’s economic advisor Basavaraj Rayareddi on Friday expressed concern over the financial strain caused by the extensive funding of the state government’s flagship guarantee schemes.

Addressing a farmers’ meeting in Mangaluru village within his Assembly segment, the Congress MLA from Yelburga in Koppal district highlighted the challenges in securing funds for developmental works due to the significant allocations required for the guarantees.

Rayareddi stated, “The Chief Minister has made me his economic advisor, and as I interact with him daily, we were able to secure this funding for the lake project. Without this, it would have been impossible. This is the only development work happening in the entire state because the guarantee schemes alone require Rs 60,000-Rs 65,000 crore. I know how difficult it is to manage our internal finances.”
The remarks shed light on the internal financial difficulties faced by the Karnataka government as it strives to fulfill its election promises. The opposition BJP and JDS have been vocal critics, accusing the Congress-led administration of neglecting developmental works due to the financial burden imposed by the guarantees.

In response to Rayareddi’s comments, Deputy Chief Minister and state Congress President DK Shivakumar defended the government’s priorities, stating, “There are no difficulties, we are streamlining. We have fulfilled our promises. We will continue the guarantee schemes.” He emphasised that the guarantee schemes were introduced to improve the quality of life for the people struggling with rising prices, not merely to secure votes.

Siddaramaiah’s government has allocated Rs 52,009 crore for the five guarantee schemes in the current financial year. The schemes include Gruha Jyoti – 200 units of free power to all households, Gruha Lakshmi – Rs 2,000 monthly assistance to the woman head of every family, Anna Bhagya – payment of cash in lieu of the additional 5 kg of rice to every member of a BPL household, YuvaNidhi – Rs 3,000 every month for unemployed graduate youth and Rs 1,500 for diploma holders for two years and Shakti – free travel for women in public transport buses. (UNI)