Basavaraj Rayareddi, the economic advisor to Karnataka's Chief Minister Siddaramaiah, has sparked controversy by highlighting the financial strain caused by the state government's five guarantee schemes. Speaking at a farmers' gathering in Mangaluru village, Rayareddi, who is also the Congress MLA from Yelburga, Koppal district, expressed concerns about the difficulty in securing funds for developmental projects due to the substantial allocations for these guarantees.

Rayareddi revealed that the government is grappling with an estimated expenditure of Rs 60,000-65,000 crore for implementing the guarantee schemes. He emphasized the challenging financial situation, stating that the lake project in his constituency was a rare instance of developmental work being undertaken in the state.

This statement has fueled the ongoing criticism from opposition parties BJP and JD(S), who have been accusing the Congress government of neglecting development in favor of fulfilling their electoral promises.

In response to Rayareddi's remarks, Deputy Chief Minister and state Congress President D K Shivakumar attempted to downplay the concerns. He assured that there were no financial difficulties and that the government was merely streamlining its processes. Shivakumar defended the guarantee schemes, asserting that they were implemented to improve the quality of life for citizens struggling with rising prices, rather than for political gain.

The five guarantee schemes, which have been allocated Rs 52,009 crore in the current fiscal year, include:

  1. Gruha Jyoti: Providing 200 units of free electricity to all households
  2. Gruha Lakshmi: Offering Rs 2,000 monthly assistance to women heads of families
  3. Anna Bhagya: Compensating BPL households with cash in lieu of additional 5 kg of rice per member
  4. YuvaNidhi: Granting monthly unemployment benefits to graduate and diploma holders
  5. Shakti: Enabling free travel for women on public transport buses

As the debate over the economic impact of these schemes continues, the Karnataka government faces the challenge of balancing its commitment to welfare programs with the need for infrastructural development and economic growth.