Karnataka’s Deputy CM G. Parameshwar acknowledges pressure on finances due to guarantee schemes
Karnataka Deputy Chief Minister G. Parameshwara has acknowledged that the state's five guarantee schemes are placing significant pressure on public finances. Costs have exceeded initial estimates of 45,000 crore, reaching over 50,000 crore, though the government maintains it can manage the burden.
Why it matters
This highlights the fiscal challenges faced by state governments when balancing populist welfare promises with budgetary constraints.
Amid several ruling party lawmakers voicing concerns about the guarantee schemes , the Deputy Chief Minister G. Parameshwara acknowledged pressure on the State’s finances due to funding of the five guarantees.
“No can conceal the pressure on the finances. However, we know - when announced - that the guarantees will require more funds. We had estimated the quantum of money required for the schemes. It was initially estimated to cost the exchequer about ₹40,000 crore to ₹45,000 crore. It has now gone above ₹50,000 crore. The decision to implement guarantees was taken consciously,” he told presspersons in Bengaluru on September 28. His reaction came after his attention was drawn to several lawmakers, Ministers, and Congress leaders airing their misgivings in public.
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