Karnataka govt's five promises come at a price

The burden of freebies is finally taking a toll on the Congress government in Karnataka. The state Cabinet last week approved an increase of ₹8 per litre in Nandini milk prices, from ₹46 to ₹54, indicating the financial strain of continuing milk sales at the earlier price. The government argues that the latest hike will increase farmers' income, while the Opposition says it will add to the cost of living for citizens.

At the heart of the problem are the five guarantees introduced by the government, which are putting pressure on the state's finances. The government estimates it will spend ₹51,000 crore on these schemes this year.

The Opposition BJP has stepped up its attack following the recent price hike announcements.


"Congress promised five guarantees, but in the name of fulfilling them, they have pushed ordinary people into greater financial distress," BJP leader CT Ravi told ET.