Karnataka Faces Financial Deadlock As Debt Crosses Rs 2 Lakh Crore And Borrowing Window Closes
The Karnataka Congress Government is staring at a deepening financial crisis, caught between the enormous burden of its five guarantee schemes, dwindling revenue collections, and a borrowing ceiling that has now been exhausted. With no room left to raise additional loans for the next four years, the state faces a grim fiscal deadlock that could stall governance and development. Since returning to power in 2023, the Congress government has relied heavily on borrowing to fund its ambitious guaranteed schemes, which alone cost the exchequer nearly Rs 52,000 crore annually. Revenue collection shortfalls, coupled with additional losses from GST simplification, have compounded the problem.
- 25 Sep 2025
- WerIndia
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