Congress Freebies Disaster In Karnataka

CONGRESS FREEBIES DISASTER IN KARNATAKA

The Karnataka government presented its Budget yesterday. The Congress Party won the state election in May by promising a vast amount of freebies. The previous BJP government had presented its Budget (for the same financial year, 2023-24) in February. So if we compare these two Budgets, we can easily see the impact of the freebies.

The Budget has 4 components:

1. Revenue expenditure = Spending on welfare schemes, etc

This has increased by around ₹ 25,000 crore (+11.3%) - due to the freebies.

2. Capital expenditure = Spending on infrastructure, etc

This has decreased by around ₹ 7,000 crore (-8.2%) - to compensate for the increase in #1.

3. Revenue receipts = Income from taxes, etc

This has increased by around ₹ 12,000 crore (+5.5%) - to pay for the increase in #1.

4. Capital receipts = Income from loans, etc

This has increased by around ₹ 8,000 crore (+10.3%) - to pay for the increase in #1.

5. Fiscal deficit = Excess of spending over income

This has increased by around ₹ 6,000 crore (+10%) - due to the increase in #1.

So the impact of freebies for the 7 crore people of Karnataka is:

1. Higher taxes

2. Higher borrowings

3. Higher fiscal deficit

4. Lesser infrastructure

Or in other words - an all-round economic disaster.

The best part is Congress has declared that it will implement this 'Karnataka Model' in all the state elections this year: Rajasthan, Madhya Pradesh, Chhattisgarh and Telangana . . .