The Congress-led government in Karnataka has announced an increase in the retail sales tax on fuels, resulting in a significant hike in prices. Effective from June 15th, Saturday noon, petrol prices rose by Rs 3 per liter, while diesel prices saw an increase of Rs 3.50 per liter, much to the dismay of vehicle owners.

Based on the reports from Daijiworld, Nithish K., Joint Secretary of the Finance Department of the Karnataka Government, issued a notification enforcing the new rates immediately. The tax on petrol has been raised by 3.9 percent, moving from 25.92 percent to 29.84 percent. Meanwhile, the tax on diesel has been increased by 4.1 percent, from 14.34 percent to 18.44 percent.

In Bengaluru, petrol prices have surged from Rs 99.84 to Rs 102.84 per liter, and diesel prices have risen from Rs 85.93 to Rs 89.43 per liter following the recent tax hike. Fuel costs are expected to be even higher in rural areas due to transportation distances. After the Model Code of Conduct was lifted after the general election, Chief Minister Siddaramaiah convened meetings with various departments. The decision to increase fuel prices was part of an effort to raise additional funds.

Vijayendra criticized the Congress-led state government, attributing Karnataka’s financial troubles to the ruling party’s mismanagement. He asserted that the state had experienced a revenue surplus during the BJP’s tenure, implying better financial handling under their administration.

He further stated, “The current financial difficulties in Karnataka are a result of the Congress government’s and the Chief Minister’s mismanagement and corruption. The state’s financial health has deteriorated significantly due to their mishandling.”

Unscientific freebie policies plunge Congress government into financial crisis

The Karnataka government has justified its decision to raise fuel prices, stating that the additional funds are necessary to support the Congress party’s election promises and state development projects. “We require funds for our guarantees and development initiatives, which is why fuel prices have increased,” explained State Minister for Commerce and Industries MB Patil.

During the public TV news hour, Ranganath, a senior journalist, criticized the government’s decision, questioning how it could be so irresponsible as to offer guarantees without a proper plan. He argued that the government doesn’t need to provide statistics, as it’s already clear how much money the government has left. He pointed out that no development activities are happening in Karnataka due to the administration’s lack of financial knowledge and its focus on freebies.

He also stated that the government is providing travel allowances for government employees who are traveling without tickets under the guarantee scheme, questioning the logic behind such practices. Ranganath lamented that ordinary people and job-seeking youth have to bear these expenses while affluent individuals travel for free in buses, highlighting the government’s poor planning. He criticized the government for now resorting to taxing petrol and diesel, which he described as the only remaining method for the government to collect revenue from the public.

The Karnataka Congress government’s strategy of using freebies and guarantee schemes to secure election victories has resulted in financial mismanagement and a shortage of funds within the government. This situation has directly impacted the people, causing hardship. The INDI alliance attempted a similar strategy with the Khata Khat scheme, offering Rs. 8500 to women, akin to Karnataka’s approach, but the outcome was unsuccessful. Whereas in Karnataka, the Congress government continues to burden lower and middle-class citizens with increased taxes, creating ongoing financial hardship and distress.