It’s Time To Scrap Freebies And Save Karnataka From Fiscal Ruin

By any measure, the state of Karnataka today finds itself in a perilous financial position. At the heart of this crisis lies a populist promise — five guarantee schemes introduced by the Congress party soon after assuming power in May 2023. What was meant to be a politically clever masterstroke has now become an economic noose tightening around the neck of governance itself. It is time for the Chief Minister and the Congress high command to accept what is now obvious to everyone — that the state cannot afford this extravagance. The guarantees must go.

The Congress government, led by Siddaramaiah, has consistently insisted that the Rs. 75,000 crore annual burden of these schemes has not compromised core government functions. Yet this claim is belied not by opposition parties or activists, but by members of the government itself. Just days ago, Basavaraj Rayaraddi, the Chief Minister’s own political advisor, told citizens that if they want roads and bridges, they should be ready to give up the benefits of Gruha Lakshmi, free ration and free bus travel. Prior to that, Home Minister G Parameshwara candidly admitted that the government has no money even for the upkeep of monuments and basic civic infrastructure. What do such statements mean, if not an implicit confession that the treasury is empty?

It must be noted that these schemes were never demanded by the people. There was no massive movement for free bus travel or monthly cash for homemakers. These were pre-poll promises, rolled out in a competitive populist race to the bottom, meant to secure votes. That they did, and the Congress won. But victory at the cost of responsible governance is no victory at all. For over a year now, Karnataka has been witnessing the consequences of this fiscal misadventure. Developmental spending is nearly frozen. Contractors have gone unpaid for months. Departments like education, health, and infrastructure are running dry. And the government’s answer? Silence, evasion, or worse — denial.

It would be one thing if these schemes actually catalyzed social transformation. But the truth is, they do not. ₹2,000 a month through Gruha Lakshmi might bring temporary relief to a poor household, but it doesn’t create jobs, improve healthcare, build schools, or develop industries. Free bus travel might ease mobility, but it doesn’t create the infrastructure to sustain it. Free ration doesn’t build nutritional security — it breeds dependency. Karnataka needs sustained economic growth, not political giveaways that trade tomorrow’s development for today’s applause.

What is required now is not bravado, but wisdom. The Chief Minister, who once prided himself on being a prudent administrator, must reclaim that role. He must call for an honest review of the guarantee schemes and take the bold decision to either cancel or drastically reduce them. Welfare must be targeted, not universal. Public spending must prioritize investment, not consumption. The Congress leadership at the national level must also take responsibility for the damage caused by electoral populism. Fiscal policy cannot be dictated by manifesto bullet points.

Karnataka has always been one of India’s more progressive, fiscally disciplined, and development-focused states. But three years of reckless financial management has undone decades of hard-earned credibility. The warning signs are everywhere. The time for correction is now. Political optics must give way to administrative duty. As the old saying goes — better late than never. Let the Congress do what is right for Karnataka, even if it means undoing what once brought them to power. That is the only way forward.