The Karnataka government has finalized a proposal to secure a ₹3,500 crore loan from the World Bank to improve civic infrastructure, including water supply, stormwater drains, sewerage systems, and flood management. Officials anticipate approval soon.
Based on the reports from Deccan Herald, as part of the allocation, the Bangalore Water Supply and Sewerage Board (BWSSB) has sought ₹1,000 crore, while the Bruhat Bengaluru Mahanagara Palike (BBMP) has requested ₹2,000 crore. An additional ₹500 crore has been sought by the Revenue Department for the Karnataka State Disaster Management Authority and Karnataka State Natural Disaster Monitoring Centre.
Proposed initiatives include constructing nine sewage treatment plants, laying 400 km of sewer network lines, building pumping stations, and fortifying 253 km of stormwater drain walls. However, the BWSSB and BBMP’s past track records have drawn criticism. BWSSB has been accused of allowing untreated sewage to pollute lakes and stormwater drains, while BBMP has been faulted for failing to clear encroachments on water bodies. A 2021 Comptroller and Auditor General (CAG) report flagged inefficiencies in stormwater drain remodeling projects, highlighting systemic deficiencies.
Media outrage erupted as the public took to social media platforms to criticize Karnataka’s move to seek a ₹3,500 crore loan from the World Bank, labeling it as a failure of the Congress government’s financial planning. Many users sarcastically referred to the situation as “Rahul’s Khatakat Movement,” alleging that the administration’s focus on freebies and populist policies has pushed the state towards bankruptcy.
Kumaraswamy blames Congress for Karnataka’s financial troubles
Meanwhile, former Chief Minister and Union Minister HD Kumaraswamy criticized the Congress government in Karnataka, alleging financial mismanagement and inadequate administration have pushed the state into a debt trap. Addressing reporters in Kolar, he stated, “While guarantees aren’t solely to blame, improper administration has depleted the treasury, leading to significant debt.”
Based on the reports from ANI, Kumaraswamy questioned the allocation of tax revenue, citing increased collections from stamp duties, registration fees, liquor prices, and electricity tariffs. Despite these hikes, he claimed, there has been negligible development. Highlighting contradictions, he referred to AICC President Mallikarjun Kharge’s statement that the government lacks funds to address Bengaluru’s pothole crisis.
He also criticized the mismanagement of welfare schemes, alleging that converting 11 lakh Below Poverty Line (BPL) cards into Above Poverty Line (APL) cards has deprived vulnerable families of affordable food supplies. He questioned why taxpayers’ money is diverted into loan repayments when revenue from tax hikes remains unaccounted for. Kumaraswamy warned that the state’s mounting debt, now at ₹1.5 lakh crore, would ultimately burden the public.
The Congress government’s focus on securing massive loans for civic projects comes amid allegations of financial mismanagement and inadequate governance. While the proposed World Bank loan aims to address critical infrastructure issues, the administration faces criticism for failing to utilize existing grants efficiently. Simultaneously, Kumaraswamy’s allegations highlight a perceived lack of transparency in managing taxpayers’ money, raising questions about fiscal discipline.
The government must balance infrastructure development and fiscal responsibility to address growing public skepticism. The Karnataka government’s vote-bank strategy of offering extensive freebies has significantly strained the state’s finances, pushing it towards bankruptcy. This approach, while politically advantageous, risks severe long-term economic repercussions, potentially jeopardizing future developmental and welfare initiatives.
