Parliament Question: Borrowings and Fiscal Management of Karnataka

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. 5038 TO BE ANSWERED ON MONDAY, 23rd March, 2026 02 CHAITRA, 1948 (SAKA) BORROWINGS AND FISCAL MANAGEMENT OF KARNTAKA 5038. DR. K SUDHAKAR: Will the Minister of FINANCE be pleased to state: (a) whether the Union Government has data regarding the borrowings of the Government of Karnataka during the last two years as well as during the period 2013-2018, if so, the details thereof, year-wise; (b) the details regarding the state of fiscal management and fiscal prudence maintained by the Government of Karnataka during the said period; (c) whether it is a fact that the borrowings of Karnataka have hit the upper limits as prescribed under the Fiscal Responsibility and Budget Management (FRBM) Act, if so, the details thereof; and (d) whether such a fiscal slip is likely to have drastic impacts on social welfare schemes by the Government, if so, the details of the steps taken or proposed to be taken by the Union Government to ensure that such a situation does not arise? ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) As per the Reserve Bank of India, the details of Open Market Borrowings of the Government of Karnataka during the last two years as well as during the period 2013- 2018 are as follows:(Rs. in crore) S. No. Financial Year Open Market Borrowings 1 2013-14 14,997 2 2014-15 18,500 3 2015-16 16,188 4 2016-17 28,007 5 2017-18 22,098 6 2023-24 81,000 7 2024-25 92,025 (b) to (d) All States including Karnataka have enacted their Fiscal Responsibility and Budget Management (FRBM) Act which makes the State Government responsible to ensure prudence in fiscal management and fiscal stability by progressive elimination of revenue deficit, reduction in fiscal deficit, prudent debt management consistent with fiscal sustainability and greater transparency in fiscal operations of the government. Compliance to the State FRBM Act is monitored by the respective State Legislatures. Department of Expenditure, Ministry of Finance, usually considers the fiscal limits as per the accepted recommendations of the Finance Commission while exercising powers to approve borrowings by States under Article 293(3) of the Constitution of India. *****