Karnataka’s Debt Skyrockets: Where Did ₹5.2K Crores Go? — Karnataka financial crisis 2023, infrastructure funding misallocation Karnataka, CAG report on state debt 2023

By | August 20, 2025

Karnataka debt crisis, infrastructure funding issues, government guarantee schemes

Karnataka’s DEBT soars to ₹63K Cr in 2023-24

Karnataka’s financial landscape has taken a significant hit, with the state‘s debt soaring to an alarming ₹63K Crores in the fiscal year 2023-24. This staggering rise of ₹37K Crores in just one year, as highlighted in the latest CAG Report, raises serious concerns about the state’s economic health.

Of the capital earmarked for infrastructure, ₹5.2K Crores was DIVERTED to fund Guarantee Schemes. This shift in financial strategy has sparked debates among economists and policymakers alike. Many wonder whether prioritizing these schemes over crucial infrastructure projects is a wise decision, especially in a time of increasing debt.

BJP’s Bommai Govt presented a Revenue Surplus

Despite the escalating debt, the BJP-led Bommai government has presented a narrative of revenue surplus. This claim has raised eyebrows, as the stark contrast between the reported surplus and the rising debt figures prompts questions about the accuracy of these financial assessments. Critics argue that the government’s focus on short-term gains from guarantee schemes could lead to long-term economic instability.

As Karnataka navigates these financial challenges, citizens are left wondering about the implications for public services and infrastructure development. With such a significant portion of funding being redirected, the future of essential services, including education and healthcare, hangs in the balance.

Overall, the alarming rise in Karnataka’s debt and the diversion of infrastructure funds to guarantee schemes are issues that demand urgent attention. The implications of these financial decisions will undoubtedly shape the state’s economic future for years to come. For more insights, you can check the full report from The Analyzer.

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