'Very sad to see the disastrous impact of freebies by our Karnataka CM Siddaramaiah': Mohandas Pai slams state

Mohandas Pai, chairman of Aarin Capital and former Infosys CFO, recently criticised the Karnataka government's fiscal strategy under Chief Minister Siddaramaiah, calling it a case of "disastrous" welfare spending that has left no funds for development.

Mohandas Pai slams Karnataka govt

"Very sad to see the disastrous impact of freebies by our Karnataka CM Siddaramaiah. Even HM (Home Minister G Parameshwara) says so — no money for development, investments, job creation," Pai said on Tuesday. He added, "Three budgets are over, no money for devp. Two more to go. So by five years what devp will Karnataka see? Jobs?"

Karnataka Home Minister G Parameshwara publicly admitted that the state had run out of funds for major development projects.

At a public event in Bagalkot, Parameshwara said, "We don’t have money, even Siddaramaiah doesn't have funds now. We’ve already given everything to the people in the form of rice, dal, and oil, yes even oil."

Minister Parameshwara ascribed the fiscal shortfall to the Congress government's heavy expenditure on its flagship welfare schemes—popularly referred to as the "five guarantees."

The programs, including cash transfers and food subsidies, have used up a large portion of Karnataka’s budget since the party took office in 2023.

Karnataka's cash crunch

In February, India Today reported that thousands of beneficiaries under the Gruha Lakshmi scheme had not received their promised monthly ₹2,000 payments since November–December 2024.

Cash transfers under the Anna Bhagya program were also delayed for more than five months.

A Karnataka Development Programme report by the state’s Planning and Statistics Department suggested major deficits in implementation across these schemes, with financial shortfalls running into several thousand crores.

In December 2024, the Karnataka government had even explored mortgaging state assets to fund key infrastructure projects.

Bengaluru’s civic body, BBMP, was reportedly seeking ₹19,000 crore through asset pledging to finance the Bengaluru Twin Tunnel Project.

As Karnataka struggles with stalled payments, growing liabilities, and few resources for capital expenditure, Pai criticised the state for disastrous spending for political gains instead of a long-term welfare plan. 

Very sad to see the disastrous impact of freebies by our @CMofKarnataka @siddaramaiah even HM says so- no money for development, investments, job creation. 3 budgets are over, no money for devp. 2 more to go. So by 5 years what devp will Karnataka see? Jobs? https://t.co/wD1gd7vmgV

— Mohandas Pai (@TVMohandasPai) June 24, 2025

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