Karnataka chief minister: Growth needs borrowing,2.9% fiscal deficit within limits

Mysuru: Chief minister Siddaramaiah Saturday rejected BJP's criticism that the state budget was debt-driven and favoured only one section, asserting that the govt had maintained fiscal discipline within the limits prescribed by the law.Defending the state's borrowing, he said development cannot take place without raising funds while adhering to fiscal norms.
"Let them say how much debt Prime Minister Narendra Modi-led Centre has taken. Development cannot be achieved without borrowings," Siddaramaiah said. He said the state govt had remained within the limits set by the Fiscal Responsibility and Budget Management Act, 2003."What does the Fiscal Responsibility Act say? It says the debt should be within 25% of GDP (gross domestic product). Our debt is 24.9 per cent. Is it within 25% or more than that? Perhaps it would be good if they read the Act," he said.Siddaramaiah also compared the state's fiscal indicators with those of the Union govt."Do you know how much debt the Centre has? Does Ashoka know? It is Rs 218 lakh crore. Do you know how much debt they have taken in 11 years after coming to power? Rs 165 lakh crore," he said, referring to opposition leader R Ashoka. He added that while the country's fiscal deficit stood at 4.4%, Karnataka's fiscal deficit was within limits."Do you know what our fiscal deficit is? It's 2.9%. That means it is within 3% of GDP," the CM said, noting that Karnataka's gross domestic product was about Rs 33.5 lakh crore.Rejecting allegations that the budget favoured certain communities, Siddaramaiah said the govt's focus was on inclusive development. "We have worked to ensure social justice. We have worked to provide equal opportunities to everyone — scheduled castes, scheduled tribes, backward classes, or minorities. A budget is meant for the development of the entire state," he added.He also alleged that changes to the Goods and Services Tax rates had affected the state's finances. "Because the GST amendment was made and the system was nationalised, we lost about Rs 10,000 crore," he added.Get the latest lifestyle updates on Times of India, along with Women's day wishes, messages and quotes !