Bengaluru, March 25 (AHN) Responding to Chief Minister Siddaramaiah’s defence of the 2026–27 Budget, the Karnataka BJP on Wednesday accused him of presenting a misleading narrative on the state’s finances.

Senior BJP leader and Leader of the Opposition R. Ashoka, in a statement, criticised that the Chief Minister, who has presented a record 17 Budgets and expressed readiness to present more, was overlooking key distinctions between capital expenditure and revenue spending.

He argued that while borrowing in itself is not an issue, the purpose for which the borrowed funds are used is crucial.

Drawing a comparison with the Union government, Ashoka noted that a significant portion of Central borrowings is allocated towards capital expenditure.

He said the Centre’s capital outlay is estimated at around Rs 12.2 lakh crore, accounting for about 3.1 per cent of GDP and nearly 22–23 per cent of total expenditure, largely directed towards infrastructure such as roads and railways, as well as long-term economic capacity building.

In contrast, Ashoka noted that the Karnataka government’s 2026–27 Budget, with a total outlay of Rs 4.48 lakh crore, allocates Rs 74,682 crore towards capital expenditure.

This constitutes roughly 16-17 per cent of total spending and about 2.2–2.5 per cent of the state’s Gross State Domestic Product (GSDP).

He also pointed out that the state’s total outstanding debt has reached approximately Rs 8.24 lakh crore, nearly 25 per cent of GSDP, with fresh borrowings of Rs 1.32 lakh crore proposed for the current financial year.

Ashoka further raised concerns about the revenue deficit of Rs 22,957 crore, indicating that the state is borrowing funds even to meet routine administrative expenses.

This, critics argued, suggests that a substantial portion of borrowings is not being used for asset creation but for day-to-day expenditures.

Ashoka emphasised that while the Union government focuses on using borrowed funds to create productive assets and drive long-term growth, the state government’s spending pattern reflects a greater reliance on loans for recurring expenses.

According to him, the issue is not the volume of borrowing but the quality and purpose of expenditure.

Ashoka further accused the Chief Minister of selectively quoting statements of senior party leaders to suit his political narrative. He said Siddaramaiah had cited remarks made by veteran BJP leader Murli Manohar Joshi regarding the Food Security Bill, but had taken them out of context.

The party clarified that Joshi’s criticism in 2013, where he termed the proposed law a “vote security bill,” was made in a specific context – referring to the timing of the National Food Security Act brought by the UPA government just months ahead of the 2014 general elections after a prolonged delay.

According to Ashoka, the remark was aimed at questioning the legislation's political intent and timing, not directed against welfare measures for the poor. He alleged that Siddaramaiah had misrepresented the statement in the Karnataka Assembly to mislead the public.

He also hit back at the Congress, pointing to past remarks by Congress leader Rahul Gandhi, who had once described poverty as a “state of mind,” terming it insensitive.

Criticising the Congress’s approach, Ashoka alleged that the party often treats the poor as a political tool during elections, whereas the BJP’s welfare approach focuses on empowerment with dignity rather than electoral tokenism.

The statement further urged Siddaramaiah to refrain from distorting facts and instead concentrate on governance, alleging that Karnataka is facing administrative challenges under the current Congress government.