Karnataka Deputy CM Acknowledges Fiscal Strain From Guarantee Schemes

Karnataka Deputy Chief Minister G. Parameshwara has acknowledged that funding the state's five guarantee schemes is exerting pressure on government finances, even as he defended the decision to roll them out.

Speaking to reporters in Bengaluru on September 28, he said the financial burden was anticipated from the outset. Initial estimates had placed the annual cost to the exchequer at ₹40,000 crore to ₹45,000 crore, but the figure has since risen past ₹50,000 crore. The choice to implement the guarantees, he said, was made deliberately.

"No one can conceal the pressure on the finances," he said, adding that it was common sense that spending on such schemes would create fiscal strain. He maintained that the government has managed the burden for three years and will continue to do so.

His remarks followed public expressions of concern by several ruling party lawmakers, Ministers and Congress leaders about the challenges of sustaining the schemes.

Municipal Administration Minister H.C. Balakrishna became the latest Congress leader to flag the issue. On September 26, he too acknowledged pressure on the government's resources because of the funds committed to the guarantees, and said the administration would have faced fewer difficulties had the schemes not been in place.

On the separate issue of pension beneficiaries being removed from the rolls, Parameshwara said the annual income ceiling for eligibility had been raised from ₹32,000 to ₹1.20 lakh. Around 23 lakh names had been cancelled, and many of those people are expected to return to the list once the higher limit takes effect. He noted that some applications had come from under-age individuals, while others lacked proper certificates.