Bengaluru, Aug 19 (PTI) The five guarantee schemes implemented by the Karnataka government accounted for 15 per cent of its revenue expenditure for the fiscal year 2023-24, said the CAG report, which was tabled in the Assembly on Tuesday.

The Congress government implemented the five pre-poll guarantees after it came to power in May 2023.

The five guarantee schemes are ‘Gruha Jyothi’ offering 200 units electricity free to every household, ‘Gruha Lakshmi’ scheme promising Rs 2,000 to every woman head of a family and ‘Anna Bhagya’ offering 10 kg rice to every member of the BPL family a month.

The Yuva Nidhi’ promises Rs 3,000 dole to unemployed graduates and Rs 1,500 to unemployed diploma holders for two years (in the 18-25 age-group) and the ‘Shakti’ scheme permits free travel for Karnataka women to travel within the state in government non-luxury buses.

According to a press release by the Principal Accountant General (Audit-1), the implementation of the schemes (guarantees) resulted in an increase in expenditure growth, 12.54 per cent from the previous year, which was the contributing factor for revenue deficit of Rs 9,271 crore.

“Consequently, the fiscal deficit of the State also rose from Rs 46,623 crore in 2022-23 to Rs 65,522 crore in 2023-24,” the statement said.

The state, in order to finance the guarantee schemes and the deficits arising thereof, availed net market borrowing of Rs 63,000 crore which was Rs 37,000 crore more than last year's net borrowings (Rs 26,000 crore), it noted.

The guarantee schemes also reduced the capital expenditure towards infrastructure by around Rs 5,229 crore when compared to previous year, it added. PTI GMS GMS ROH

State guarantee schemes increased revenue expenditure and borrowing, deepening fiscal and revenue deficits and crowding out capital spending. Implementation of five state guarantee schemes increased revenue expenditure, accounting for fifteen percent of revenue outlay and driving year-on-year expenditure growth that contributed to a revenue deficit. The expanded recurrent commitments led to a higher fiscal deficit and substantially increased net market borrowings to finance the schemes, while corresponding with a measurable reduction in capital expenditure on infrastructure compared to the prior year.