Karnataka’s Deputy CM G. Parameshwar acknowledges pressure on finances due to guarantee schemes

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Deputy Chief Minister G. Parameshwar said 'we have managed it (financial burden of guarantee schemes) for three years, and we will continue to manage’. | Photo Credit: File photo

Amid several ruling party lawmakers voicing concerns about the guarantee schemes, the Deputy Chief Minister G. Parameshwara acknowledged pressure on the State’s finances due to funding of the five guarantees.

“No can conceal the pressure on the finances. However, we know - when announced - that the guarantees will require more funds. We had estimated the quantum of money required for the schemes. It was initially estimated to cost the exchequer about ₹40,000 crore to ₹45,000 crore. It has now gone above ₹50,000 crore. The decision to implement guarantees was taken consciously,” he told presspersons in Bengaluru on September 28. His reaction came after his attention was drawn to several lawmakers, Ministers, and Congress leaders airing their misgivings in public.

He said, “Everyone knew, at the time they were announced, that we will need funds for the guarantee schemes. It is common sense. When we start spending on them, will there be no pressure on finances? Naturally, it will come. The burden will increase, but we have managed it for three years, and we will continue to manage.”

Municipal Administration Minister H.C. Balakrishna is the latest Congress leader to speak on the challenge of implementing the guarantee schemes.  | Photo Credit: MURALI KUMAR K

Municipal Administration Minister H.C. Balakrishna is the latest Congress leader to speak on the challenge of implementing the guarantee schemes. He had also acknowledged pressure on the government due to the commitment of funds to the guarantee schemes. Had it been without guarantees, the government would have faced less challenges, he said on September 26.

On the problem over deleting pension beneficiaries in Karnataka, he said, “We have already enhanced the upper limit criteria from ₹32,000 to ₹1.20 lakh (per annum). Names of about 23 lakh persons had been cancelled. With the enhancement of upper limit, a large number of them will be back in the list. Several under-age persons had applied, and some had not provided proper certificates.”

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