Karnataka polls and the elephant in the room: Financial management

Biggest point of attack from BJP has been that funds have been returned unspent by Siddaramaiah govt

Both the Congress and the Bharatiya Janata Party (BJP) seem to have learnt a lesson from the recently concluded Gujarat election. In the coming election in Karnataka, the Congress will try and reach out to urban areas. There are 70 urban and 154 rural Assembly constituencies in Karnataka. As many as 28 urban constituencies are in Bengaluru and the rest are spread across seven city corporations, 43 city municipal councils, 65 town municipal councils and 92 town panchayats.

As the data suggests, the services sector, which is relatively urban, has been growing. The Congress faces a rural crisis. How will it balance its priorities in the election? 

The biggest point of attack from the BJP has been that funds, especially meant for the marginalised sectors, have been returned unspent by the Siddaramaiah government. And yet, the government has reported a fiscal deficit in the past three years. The question the BJP is asking is: Where did the money go? The government will have to find a convincing answer, especially in urban constituencies.

 

Source data: Karnataka govt Budget, March 2017