Leader of the Opposition in the state Assembly, R Ashoka, on Tuesday accused the state government of increasing Karnataka’s debt burden through heavy borrowing and diversion of funds meant for Scheduled Castes and Scheduled Tribes to fund their guarantee schemes.
Speaking during the discussion on grant applications under the state budget 2026-27, Ashoka claimed that loans taken during Siddaramaiah’s previous tenure and the current term together amounted to $4.36 lakh crore, which represents 52.23% of Karnataka’s total debt. Accordingly, he added, the loan burden per resident rose to $1,12,400.
He compared these numbers to loans under previous administrations. Despite fiscal pressures during the Covid-19 pandemic, borrowing during former Prime Minister BS Yeddyurappa’s tenure stood at Rs. $1.63 lakh crore represents 19.61% of the country’s debt, he said. During HD Kumaraswamy’s tenure, she stood at $1.01 lakh crore and represents 12.15% of debt, whereas $He added that Rs 67,000 crore borrowed during the era of former Prime Minister Basavaraj Bommai represents 8.03%.
The state is now paying for it, Ashok said $Rs 45,600 crore per annum to repay the loan.
“This translates to $125 Crores per day and $“Rs 5.2 crore per hour,” he added. Tracking the trend over the past decade, Ashok said the loan burden per resident has risen steadily. The per capita debt was about Rs 5.2 lakh per hour. $19,000 in 2013 before Siddaramaiah took office for the first time and rose to $37,000 by the end of the term, he said.
Ashok added that the per capita debt amounted to $76,100 in 2023 before Siddaramaiah returned to office and further increased to $1,12,400 by March 2026. He warned that these borrowing patterns threaten to push the country towards “financial bankruptcy”.
Ashok also accused the government of diverting funds meant for Scheduled Castes and Scheduled Tribes under the Scheduled Castes Sub-Plan (SCSP) and Tribal Sub-Plan (TSP) to fund their security schemes.
“Today, money has been diverted here. In this money transfer, social justice has been ignored. If money meant for Dalits is looted, can it be called social justice?” He said.
According to him, about $Rs 14,198 crore of SCSP and TSP allocations for guarantee schemes have been utilized during the current financial year.
He said $Rs 8,296.32 crore has been allocated for Gruha Lakshmi Scheme, $1,537 Crores for Shakti, $1,612 Crores for Anna Bhagya $2,591.6 Crore for her puppy Jyothi W $1,062 crore for Yuva Nidhi. “In total, $“Rs 14,198 crore has been transferred this year,” he said.
Ashok also claimed that this conversion had taken place in earlier years. “In the period 2023–24, $Rs 11,144 crore was taken from SC/ST funds. In 2024–25, $Rs 14,282.68 crore was taken. In the period 2025–26, $Rs 13,343.84 crore was taken. In 2026–27, $“Rs 14,198.97 crore has been taken.” “This amount is increasing year by year. In total, $“Rs 53,059.45 crore belonging to SC/ST communities was siphoned off during Siddaramaiah’s tenure,” he added.
He also asked whether the funds allocated in the budget were reaching the intended beneficiaries. Although the allocated budget $Ashok said the actual amount available will be less after accounting for transfer to guarantee schemes, which is Rs 44,632 crore for the welfare of distressed communities/STs in 2026-27. Referring to the review meeting held on January 31, he said the release and utilization of funds under the SCSP and TSP was limited.
He also criticized the use of ST/ST funds for programs that he said had nothing to do with their welfare, including wildlife conservation initiatives, hospital maintenance and formulation of IT policies. “How do Dalits relate to wildlife conservation? Are there SC tigers and ST elephants?” he asked.
As of press time, there was no response from the state government to Ashoka’s comments.
