Bengaluru (Karnataka) [India], May 28 : In a significant political development, Karnataka Chief Minister Siddaramaiah announced his resignation on Thursday, capping off a tenure marked by intense debate over the state's fiscal health and the implementation of ambitious welfare schemes.
Following the submission of his resignation to the Special Secretary to the Governor, Siddaramaiah held a press conference to address his legacy and push back against allegations levelled by Prime Minister Narendra Modi and other political opponents regarding his administration's economic management.
The outgoing CM rejected assertions that the state's "Guarantee Schemes" bankrupted the treasury. He pointed to strong fiscal performance, noting that Karnataka currently ranks second in the nation in GST collections, trailing only Maharashtra.
"We have made a sincere effort to fulfil the promises made to the people. We have not broken our word. This is something that has given me and our party satisfaction. They have spread misinformation about me. They have spread misinformation against me, including Prime Minister Modi. They said that there will be no money for development work, and the treasury will be empty. After the guarantee was implemented, we are number 1 in the entire country in terms of income. We are second in GST collection. Maharashtra is number 1, Karnataka is number 2," he further said.
Siddaramaiah highlighted that the state's growth rate of 8.1% outpaced the national average of 7.4%. He further defended his debt management, stating that Karnataka's fiscal deficit remains within the 3% limit mandated by the Fiscal Responsibility Act, and debt levels are held at approximately 24.94% of the Gross State Domestic Product (GSDP).
"If the entire country is 7.4, Karnataka is 8.1. Siddaramaiah has been accused of taking loans as the finance minister. This is false. This is an accusation made in politics. I have said this while answering in the assembly, too. The GSTP Fiscal Act is in force. There are 3 criteria in it. The fiscal deficit should be within 3%. According to the Fiscal Responsibility Act-22, the fiscal deficit should be within 3%. Ours is within 3%. It is 2.9.5 lakhs. The debt should be within 25% of our GSDP. Karnataka's GSDP is more than 30 lakhs. Karnataka's debt is 24.94 lakhs. It is within 25%. There should be a revenue surplus. We are not. Because the previous BJP government had ruined the economy," Siddaramaiah said.
The CM attributed the current revenue deficit to the central government, alleging that the 15th Finance Commission failed to release promised grants and that significant funding for projects like the Jal Jeevan Mission and Upper Bhadra irrigation project had been withheld.
"This year, there is a revenue deficit of 19 thousand crores. Why did the 15th Finance Commission not give us the money that was due to us? 5,495 crores. Special grants were not given. 3 thousand crores were not given for the development of Bangalore lakes, 11 thousand crores were not given. In addition, they announced in the budget for Upper Bhadra. Nirmala Sitharaman announced in the budget. They said that they will give 5300 crores. Since the implementation of GST, there was relief. They stopped it. JJM, Jal Jeevan Mission, did not give 17 thousand crores. They stopped NREGA. They did not give us the money that we had paid. That is why our budget became a deficit. Otherwise, we would have been in surplus. The purchasing power has increased due to the guarantee," he said.
Reflecting on his track record, he stated that his government had delivered on over 300 of the 550 promises made in the 2023 manifesto, in addition to the successful rollout of the five major guarantee schemes.
Siddaramaiah said, "We have worked to implement the promises made in the manifesto. In 2013, we made 163 promises, of which we have fulfilled 158 promises. In 2023, we made more than 550 promises. Of which we have fulfilled 300 promises. In addition, we have announced 5 guarantee schemes, which we have fulfilled in the first year."
Visibly emotional, the 78-year-old leader reflected on his accidental entry into politics and his journey from a village upbringing to the state's highest office.
"I never thought of making property. I have been in politics for about 50 years. I will be 80 years old in 28. This is a book about my political life. In today's politics, only those who have people power can survive. People who have power.. I have never compromised on the values and ideology that I believe in," he said.
Siddaramaiah thankED his colleagues and the people of Karnataka for their cooperation and trust during his two terms in office (2013-2018 and his subsequent tenure. As he steps down, the state now awaits further developments regarding the transition of power, with Governor Thaawarchand Gehlot expected to return to Bengaluru tonight to initiate the next steps.
"Thank you to everyone who showed me love, when I was the Chief Minister for 2 times, from 2013 to 2018. From 2013 to this day, my colleagues who worked with me on this occasion have expressed all kinds of support, cooperation and love for me. I am a friend to them, I come from a village, I never dreamed that I would one day become an MLA, a minister or a Chief Minister. I came into politics by accident because no one in my family was in politics," he further said.
He submitted his resignation to Prabhu Shankar, Special Secretary to the Karnataka Governor. Governor Thaawarchand Gehlot, who is out of the state, is returning tonight.