Bengaluru, March 25 -- Karnataka government on Wednesday rejected criticism that the state administration is being run on debt, asserting that such claims are "far from the truth" and that borrowing is a necessary and regulated part of governance aimed at welfare and development.
Defending the state's fiscal position, the government said it had raised loans of Rs 1.32 lakh crore against a total budget size of about Rs 4.48 lakh crore, arguing that this cannot be termed a "debt-driven budget." It maintained that no state or country can function without borrowing, and that all loans have been raised within prescribed limits.
Officials noted that the total outstanding debt of the state stands at approximately Rs 8.24 lakh crore, adding that ...