Karnataka Chief Minister Siddaramaiah’s pre-election budget was on expected lines—full of goodies, something for every section of society and sticking to the core philosophy of welfare politics. Most of the proposals sounded doable and there was no attempt to sell unrealistic dreams, as some feared. But the budget, which aimed to cement Siddaramaiah’s traditional support base consisting of minorities, backward castes and Dalits and also reach out to people across caste and class lines, will no doubt stretch the state’s economy, already groaning under the burden of welfare schemes announced by his government.
Karnataka’s debt burden has more than doubled during his term—from `1.36 lakh crore to `2.86 lakh crore. Though it’s still within the stipulated limit of 25 per cent of GSDP, the mounting debts underline the cost of appeasement politics. To implement the new schemes, the state will again need to borrow heavily, as much as `39,000 crore. Economists will say this welfare-oriented development model is not sustainable in the long run, but that doesn’t bother politicians to whom vote banks matter more than financial prudence.
A close look at the budget proposals will reveal how Siddaramaiah has paid attention to reaching out to even small sections and castes, in an apparent bid to expand his support base. As expected, there were sops for farmers, fishermen, weavers, government employees and pensioners. But more significantly, in a gesture that could earn him political dividends, he has announced financial aid for mechanics, carpenters, fruit and vegetable sellers, bakers, people running welding and puncture shops, and others.
But that was what was expected from Siddaramaiah. He started his term as CM with a grand announcement of a housing loan waiver for SC/STs and backward castes, and the first of his many ‘Bhagya’ (fortune) schemes—Anna Bhagya, the free rice scheme. The welfare schemes, launched through his tenure, may help him win votes, but it’s the taxpayer who will pay the price.