With the Congress’ five guarantees taking fiscal priority, Chief Minister Siddaramaiah is apparently shooing away party lawmakers who are coming to him seeking grants.
Normally, ruling party MLAs approach the chief minister with fund requests for roads, bridges and other infrastructure works in their constituencies. To keep MLAs happy, chief ministers dole out special development grants that do not have any budgetary provision.
Siddaramaiah is scheduled to present a new budget for the 2023-24 fiscal on July 7. This will be his record 14th budget as the finance minister. He has to mobilise resources to fund the Congress’ five guarantees - Gruha Jyothi, Gruha Lakshmi, Anna Bhagya, Shakti and Yuva Nidhi - that are are expected to cost Rs 50,000-60,000 crore annually.
In this fiscal alone, Siddaramaiah is expected to set aside Rs 40,000 crore to fund the guarantee schemes.
It is said that Siddaramaiah is discouraging MLAs from seeking grants for roads, bridges and other works for the next one year.
“The CM is asking MLAs to wait until after the budget. This will be a re-appropriation budget for the remaining eight months of the financial year. So, he can’t change the goal posts. In the 2024-25 budget, the CM will have more leeway,” one Congress MLA said.
Even the finance department is likely to advise Siddaramaiah not to indulge MLAs who come seeking discretionary grants.
Siddaramaiah has been non-committal to requests being made to him by various groups seeking funds. Recently, when the Karnataka State Contractors Association sought clearance of pending bills worth Rs 20,000 crore, Siddaramaiah sought time citing “financial indiscipline” under the previous BJP government.
Govt softens stand
The finance department has allowed departments and state-run bodies to release payments for ongoing works after obtaining the approval of the ministers concerned and verifying the genuineness of the bills.
In a circular dated May 22, the government had stopped payments to all works sanctioned under the previous BJP regime.
Departments have been allowed to release payments for committed expenditure and externally-aided ongoing works. Further, the finance department has said that payments can be made for procurement of goods and services in ongoing
works.
However, the freeze on payments for works that are yet to start will continue.