Karnataka Budget 2026-27 | 'Slogan' Ramaiah...will push people into debt trap: HD Kumaraswamy attacks CM

Union Minister HD Kumaraswamy on Friday launched a sharp attack on Chief Minister Siddaramaiah over the Karnataka Budget, claiming the government’s fiscal policies were pushing the state towards a dangerous debt spiral.

Reacting to Siddaramaiah presenting his 17th Budget, Kumaraswamy said the milestone may be politically celebratory for the Chief Minister but ordinary people would be left to deal with its consequences.

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 prioritising political messaging over financial prudence.

“I listened to the prolonged speech of ‘Slogan’ Ramaiah. While he celebrates presenting his 17th Budget, the people of Karnataka will be burdened with its fallout,” Kumaraswamy said.

He alleged that the Congress government had pushed the state’s economy “into disarray” and criticised Siddaramaiah for repeatedly attacking the Union government in his speech.

According to Kumaraswamy, such criticism ignored the spirit of cooperative federalism while attempting to portray the state government’s economic model as successful.

He also claimed the state administration had turned into a patronage system for Congress functionaries, alleging that public borrowing was being diverted towards 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 argued that concerns about Karnataka’s finances were already evident in warnings issued by constitutional and financial institutions.

He pointed out that Karnataka’s share in central tax devolution had increased under the 16th Finance Commission framework—from 3.61 per cent to 4.7 per cent — which he said would bring more than Rs 11,000 crore in additional funds to the state.

Despite this, he said the state’s fiscal position was deteriorating, highlighting 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 problem. 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, calling it a “ticking fiscal bomb” and warning that the state was borrowing even to meet routine administrative expenses.