BJP leaders on Wednesday staged a protest at Vidhana Soudha premises here, accusing the Congress government in Karnataka of pushing the state towards a financial crisis and failing to deliver on development.
The demonstration comes a day after the Karnataka Finance Department cautioned against taking up major expenditure projects at this stage, citing limited fiscal space and the need for a "realistic and prudent" approach to funding.
The protest was led by BJP state president B Y Vijayendra, Leader of Opposition in the Legislative Assembly R Ashoka and Leader of Opposition in the Legislative Council Chalavadi Narayanaswamy near the Kengal Hanumanthaiah statue at the Vidhana Soudha here. MLAs and MLCs also participated in the protest.
1 September 2026
Get the latest issue of Outlook Business
The BJP demanded proper governance in the state and alleged that the Finance Department's observations had exposed the government's financial position.
The party also accused the Congress government of making "false assurances" despite the state's financial constraints and alleged that development in Karnataka was suffering.
On Tuesday, the Finance Department made the observations while examining a proposal for the Chief Minister's Rural Road Connectivity Scheme, estimated to cost ₹10,000 crore.
In a note on the proposal, the department said the project was proposed to be executed over 2026-27 and 2027-28. It said starting a major project for which funds had neither been budgeted nor earmarked could create cash-flow and fiscal-management challenges.
Advertisement
Acknowledging the Finance Department's advice, Chief Minister D K Shivakumar, who also holds the Finance portfolio, said on Tuesday that there was nothing wrong with the department cautioning the government, as it was acting in the government's interest.
According to the department's assessment, Karnataka's fiscal deficit for 2026-27 is projected at 2.95%, against the 3% limit permitted under the Fiscal Responsibility and Budget Management framework.
The Finance Department also pointed to the state's existing commitments, noting that the balance cost of ongoing works exceeded ₹2 lakh crore. Pending bills from four major departments Public Works Department, Water Resources, Minor Irrigation and Rural Development and Panchayat Raj alone amounted to ₹36,136 crore, it said.
