State on the verge of bankruptcy: Ashok

Leader of the Opposition in the Legislative Assembly R. Ashok on Tuesday alleged that Karnataka was “on the verge of bankruptcy” and wondered whether it had financial strength to handle the drought, while reading out a note by the Finance Department which said State had exhausted its borrowing capacity to meet budgetary announcements for 2026-27 and taking up any new schemes would lead to cutting down allocations from other departments.

The note displayed by Mr. Ashok, during debate in the Assembly on drought, said that State did not have space to borrow any more money to fund new projects.