In the aftermath of the recent elections, the Congress party, triumphant with its six guarantees and welfare schemes, now confronts the daunting challenge of turning promises into reality. The fervor of the electoral season saw both Congress and its competitor, BRS, vying with each other by announcing an array of sops, with Congress pledging more guarantees than its counterpart. However, the path to delivering on these assurances appears strewn with fiscal obstacles.
Renowned activist and Lok Satta founder, Jayaprakash Narayan, highlights the financial constraints faced by the Congress government in Karnataka, drawing parallels to the current scenario in Telangana. Estimates suggest an annual expenditure of a staggering 1.2 lakh crore to implement various schemes, including the ambitious 2 lakh loan waiver for farmers. The state’s revenue and expenditure for 2022-23 already hover around 1.72 lakh crore, leaving minimal room for additional financial burdens.
Narayan asserts that such grandiose promises, if fulfilled, could lead to a complete allocation of the budget towards welfare schemes, salaries, and pensions, leaving insufficient funds for essential capital expenditures such as infrastructure development.
Experts weigh in on the potential economic strain, anticipating that certain corporations, like TSRTC, already grappling with financial challenges, may face further burdens if promises like free bus travel for women are implemented. Power distribution companies are expected to require an additional 5,000 crore annually for free power up to 200 units and other power subsidies.
The specter of increased borrowings looms large, but the state, having reached its Fiscal Responsibility and Budget Management limits, is barred from taking further loans. As Congress embarks on the journey to fulfill its electoral commitments, balancing fiscal prudence with social welfare remains a formidable task.
