Karnataka HM backtracks on 'money crunch' claim, adds 'clarification'

After allegedly stating that the Karnataka government had no funds left for new development projects, its Home Minister G Parameshwara has clarified his remarks, insisting that his words were misunderstood.

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At a recent public event in Bagalkot district, the minister had pointed out the challenges of financing fresh projects, noting that a large portion of the state’s budget had already been committed to welfare schemes under the Congress government’s flagship guarantees. He reportedly referred to the government having provided essentials like rice, pulses, and oil which had stretched the state’s finances.

However, in a follow up, Parameshwara stressed that he had not claimed the government was out of money. Instead, he mentioned  that he had only encouraged local leaders to take initiative and submit development proposals to the Centre, especially for large-scale projects aimed at improving regions like Badami.

He also highlighted the importance of planning more projects without hesitation, suggesting that sending a well-drafted proposal to the central government could help start development and heritage preservation efforts in the area.

The clarification comes at a time when there are growing concerns about the state’s financial situation.There have been concerns about the rising costs of fulfilling welfare commitments, alongside reports of delays in disbursing funds under schemes like Gruha Lakshmi and Anna Bhagya.

Earlier this year, the state reportedly looked into raising ₹19,000 crore by using BBMP assets to fund the Bengaluru Twin Tunnel project.