K’taka Budget: Kumaraswamy Could Defer Siddaramaiah’s Pet Project

Not including Siddaramaiah’s pet project in the Budget could spell trouble for the JD(S)-Congress coalition.

Former Karnataka CM Siddaramaiah and Chief Minister HD Kumaraswamy (right). 

(Photo: PTI)

The ‘Pradhan Mantri Kisan Samman Nidhi’ scheme, a direct income scheme for farmers, is a big trump card for the Narendra Modi-led government ahead of general elections. Even in drought-hit Karnataka, the BJP is all set to flash the scheme as its big promise to woo farmers.

But for the JD(S)-Congress coalition, a similar scheme launched by the previous Congress government is expected to widen differences between the alliance partners. It could potentially bring Chief Minister HD Kumaraswamy and Coalition Coordination Committee Chair Siddaramaiah at loggerheads once again.

Taking a cue from Telangana’s ‘Rythu Bandhu’ scheme, in his interim state Budget presented ahead of the 2018 Karnataka Assembly elections, former Chief Minister Siddaramaiah had announced ‘Raitha Belaku’. Under this scheme, Rs 3,500 crore was earmarked, where farmers growing rain-fed crops were promised assistance of Rs 5,000 per hectare up to a maximum of Rs 10,000, which was to be transferred to their bank accounts.

However, according to sources, the scheme is unlikely to find place in the upcoming Budget of the coalition government, so the state can find more funds for Kumaraswamy’s loan waiver promise. This could happen despite the coalition agreeing to carry forward all schemes announced by the previous Congress government.

Farm Loan Waiver Better Than Direct Income: HDK

During his Budget speech in February 2018, Siddaramaiah had announced that out of the Rs 3,500 crore earmarked for the ‘Raitha Belaku’ project, Rs 1,000 crore will be released during the same financial year. This did not happen in the coalition government’s Budget presented by Kumaraswamy in July 2018. For the CM, farm loan waiver was the focal point.

Reacting to the Modi-led central government’s direct income transfer scheme, Kumaraswamy said on Friday, 1 February, that Karnataka’s loan waivers will benefit farmers more than the central government’s direct transfer scheme.

“My calculation says that this will cover about 59 lakh farmers in Karnataka who will totally get Rs 3,528 crore. But our crop loan waiver scheme itself reaches 44 lakh farmers at a cost of over Rs 48,000 crore,” the chief minister said.

Many believe that a similar explanation was given by Kumaraswamy to defer Siddaramaiah’s pet project.

Embarrassment For Siddaramaiah Camp

Siddaramaiah was also among those who opposed the central government’s scheme. He called the Modi government’s scheme a copy of ‘Raitha Belaku’.

On the day the central government’s interim Budget was announced on 1 February, Siddaramaiah tweeted:

However, it soon became an embarrassment for Siddaramaiah when it became clear that his scheme is likely to be deferred in the upcoming state Budget. An upset Siddaramaiah camp then attacked the Kumaraswamy government for this decision.

“It was decided that all schemes of the previous government will be continued. Yes, it is understandable that all schemes can’t implemented, but at least the flagship project should have been retained. Now, the coalition has lost a trump card against the BJP in the state, which would use the central government’s scheme in the upcoming elections,” a Congress MLA said on condition of anonymity.

The Karnataka Budget will be presented on 8 February.

Two Big Projects Can Strain The State Budget

According to the state finance department, the Karnataka government would allocate close to Rs 20,000 crore in the upcoming Budget for farm loan waivers.

One of the reasons for this large allocation is the criticism Kumaraswamy faced recently. The BJP had alleged that only 800 farmers had benefitted from loan waivers instead of 44 lakh recipients, as promised by the Karnataka government. The chief minister cited technical reasons for the delay and is expected to expedite the project in the upcoming state Budget.

With a large sum set aside for loan waiver, funding another big project like ‘Raitha Belaku’, which requires Rs 3,500 crores, would put pressure on the state Budget, according to the state finance department.

Siddaramaiah, who is struggling to regain his position in the new coalition equations, was reportedly a reason for several confrontations within the alliance. Last month, Kumaraswamy had threatened to quit after some Congress MLAs claimed that Siddaramaiah was their chief minister. The CM clarified only on Monday, 4 February, that the coalition is stable.

With such conflict prevailing, the loan waiver vs the direct income scheme is expected to create further headaches for the JD(S)-Congress alliance.