Contributor,
Shubhankar C.
Advocate
Chairperson Adi Shankara Foundation
Shubhankar C.
Advocate
Chairperson Adi Shankara Foundation
A State in Financial ICU
Karnataka, once known for its robust economy and infrastructure development, is now facing a severe financial crisis. The current government, led by the Congress party, came to power by promising a series of freebie schemes, including free electricity, free bus travel for women, ₹2,000 monthly assistance for women below the poverty line, and ₹3,000 for unemployed graduates. While these schemes were introduced with the intention of helping the economically weaker sections, they have placed an unbearable burden on the state’s financial health.
In just two years, the state government has exhausted a significant portion of its funds on these welfare schemes, leaving very little for critical infrastructure and development projects. Roads remain in disrepair, new projects have been put on hold, and essential services are suffering due to a lack of funding. The government, in an attempt to recover revenue, has increased costs in several areas, including property registration, stamp duties, fuel prices, and now, public transportation fares. This has forced many citizens to rely on private transport, further worsening Bengaluru’s already congested traffic situation.
The real danger lies in the long-term impact of these short-sighted policies. If the government continues to spend beyond its means, Karnataka will be forced to take large loans, adding to its financial woes. Future governments will inherit an economy struggling under heavy debt, making it difficult to invest in essential infrastructure, healthcare, and education. Ironically, the same leaders who are making these decisions today will likely criticize future governments for the lack of development, conveniently ignoring the fact that they created the financial instability in the first place.
It is crucial for citizens to recognize the importance of responsible governance. While social welfare is necessary, it should not come at the cost of economic sustainability. The people of Karnataka must hold their leaders accountable and demand policies that balance welfare with long-term growth. Otherwise, the state risks slipping further into financial distress, with future generations bearing the burden of today’s reckless decisions.
Karnataka, once known for its robust economy and infrastructure development, is now facing a severe financial crisis. The current government, led by the Congress party, came to power by promising a series of freebie schemes, including free electricity, free bus travel for women, ₹2,000 monthly assistance for women below the poverty line, and ₹3,000 for unemployed graduates. While these schemes were introduced with the intention of helping the economically weaker sections, they have placed an unbearable burden on the state’s financial health.
In just two years, the state government has exhausted a significant portion of its funds on these welfare schemes, leaving very little for critical infrastructure and development projects. Roads remain in disrepair, new projects have been put on hold, and essential services are suffering due to a lack of funding. The government, in an attempt to recover revenue, has increased costs in several areas, including property registration, stamp duties, fuel prices, and now, public transportation fares. This has forced many citizens to rely on private transport, further worsening Bengaluru’s already congested traffic situation.
The real danger lies in the long-term impact of these short-sighted policies. If the government continues to spend beyond its means, Karnataka will be forced to take large loans, adding to its financial woes. Future governments will inherit an economy struggling under heavy debt, making it difficult to invest in essential infrastructure, healthcare, and education. Ironically, the same leaders who are making these decisions today will likely criticize future governments for the lack of development, conveniently ignoring the fact that they created the financial instability in the first place.
It is crucial for citizens to recognize the importance of responsible governance. While social welfare is necessary, it should not come at the cost of economic sustainability. The people of Karnataka must hold their leaders accountable and demand policies that balance welfare with long-term growth. Otherwise, the state risks slipping further into financial distress, with future generations bearing the burden of today’s reckless decisions.
