BELAGAVI: Karnataka Revenue Minister Krishna Byre Gowda assured the Assembly that the State Government was committed to following the Fiscal Responsibility and Budget Management Act and would stick to 3% of GSDP, as of now.
He, however, said that this limit could be breached if the government encounters any exigencies at the eleventh hour.
While the discussion on the supplementary budget estimate was going on, Leader of Opposition R Ashoka expressed deep concern over the increased fiscal deficit of the state and said as per the data given by the government, it has remained at 2.95%, which is quite near the threshold limit.
The deficit, which was Rs 65,525 in 2023-24, has been increased to Rs 90,420 crore in the FY26, that is from 2.55 of the GSDP to 2.99%, Ashoka said. Despite Karnataka being a fiscally better-managed state, Ashoka said, the state’s debt has also increased to 4.08 lakh crore from last year’s Rs 3.24 lakh crore.
However, the revenue collection was just 90,998 crore as against the estimated Rs 2.08 lakh crore. If the government’s poor management continues, the fiscal deficit could breach the 3% limit, Ashoka said. But Gowda promised that the government would not allow it to cross the limit.