Karnataka deputy chief minister acknowledges rising cost of guarantees

Karnataka Deputy Chief Minister G. Parameshwar has acknowledged pressure on the state’s finances from the five guarantee schemes implemented by the Congress government. Speaking to reporters in Bengaluru, he said the government had known when the schemes were announced that they would require substantial funding.

The initial estimate was between ₹40,000 crore and ₹45,000 crore, but the cost had now risen above ₹50,000 crore. Parameshwar said the decision to implement the guarantees had been deliberate. He argued that financial pressure was expected once payments began but insisted that the government had managed the burden for three years and would continue to do so.

His comments came after lawmakers, ministers and other Congress leaders publicly expressed concerns about the challenge of funding the commitments. Municipal Administration Minister H.C. Balakrishna had said the government would have faced fewer difficulties without the guarantees.

Parameshwar also discussed the removal of pension beneficiaries from Karnataka’s list. He said the annual income limit had been increased from ₹32,000 to ₹1.20 lakh, allowing many of the approximately 23 lakh removed beneficiaries to return. He said some applicants had been underage or had failed to provide adequate certificates, which contributed to their removal.

The government was therefore reviewing eligibility under the revised limit. The deputy chief minister’s comments indicate that the guarantees remain a major budgetary issue for the state while the government continues to defend the schemes and their implementation.