Karnataka BJP Demands Resignation Over Alleged Fiscal Crisis

Opposition leaders R Ashoka and Chalavadi Narayanaswamy spearheaded the demonstration, alleging that developmental projects across the state have stalled due to mounting debt and a severe financial crunch. Ashoka cited the Finance Department’s recent internal warnings as evidence of systemic mismanagement, arguing that the government has exhausted its borrowing capacity while leaving nearly 34,000 crores in bills unpaid. Narayanaswamy further alleged that the administration is diverting funds earmarked for Scheduled Castes and Scheduled Tribes to cover general expenditures.

These accusations follow reports of a Finance Department circular urging the Cabinet to curb new spending commitments. Analysis from PRS Legislative Research projects a fiscal deficit of 97,448 crore for the 2026-27 period, or 2.9 percent of the Gross State Domestic Product. With revenue deficits projected at 22,957 crore and significant borrowing planned, BJP MLA Dr. Bharat Shetty has formally demanded that the government release a white paper to disclose the true state of the treasury. The government has yet to provide a comprehensive response to the opposition's claims regarding salary delays and the depletion of state coffers.