Siddaramaiah asks Centre to recognise 'Guarantee Model of Karnataka', provide greater fiscal support

Bengaluru, Nov 5 (PTI) Chief Minister Siddaramaiah on Wednesday urged the Centre to recognise the "Guarantee Model of Karnataka" and provide greater fiscal support and the rightful share of revenues to empower states to innovate and invest in their people.

He was speaking at an event organised by the Fiscal Policy Institute here.

"Our goal is to ensure that the Guarantee Model of Karnataka becomes a national template for inclusive development, one that bridges regional and social inequalities and strengthens the spirit of cooperative federalism," he said.

The Congress government's five guarantee schemes are —200 units of free power to all households (Gruha Jyoti), Rs 2,000 monthly assistance to the woman head of every family (Gruha Lakshmi), the additional 5 kg of rice to every member of a BPL household (Anna Bhagya), Rs 3,000 every month for unemployed graduate youth and Rs 1,500 for diploma holders for two years (Yuva Nidhi), and free travel for women in public transport buses (Shakti).

Backing the five guarantee schemes, Siddaramaiah said the journey began not in the corridors of Vidhana Soudha, but in the lives of ordinary people--women who struggled to balance inflation and household dignity; youth who sought jobs but found indifference; farmers who faced the twin burdens of climate distress and market volatility; and the poor whose purchasing power was eroded by price rise and policy neglect from the union government.

"The guarantee schemes were therefore not populist giveaways, but policy correctives and instruments of redistributive justice and inclusive growth in an era where the so-called 'trickle-down theory' has failed to reach the poor," he said.

The CM said more than Rs 96,000 crore has been allocated on the implementation of these schemes, and in the 2025-26 state budget, an allocation of Rs 51,034 crore has been made towards them. "56.06 per cent of this goes to Gruha Lakshmi, 19.79 per cent to Gruha Jyothi, 12.59 per cent to Anna Bhagya, 10.39 per cent to Shakti, and 1.18 per cent to Yuva Nidhi," he said.

According to him, over 1.24 crore women receive support through Gruha Lakshmi, 1.63 crore households benefit from Gruha Jyothi, 4.08 crore people benefit from Anna Bhagya, and 2.84 lakh youth receive Yuva Nidhi.

More than 63 per cent of passengers in state-run buses are women traveling under Shakti scheme. Over 580 crore free bus trips have been delivered, he said.

"We call upon the union government to recognise this model and to provide greater fiscal support and rightful share of revenues to empower states to innovate and invest in their people," the CM said.

He noted that Karnataka now ranks first in the country in per capita income, having achieved 101 per cent growth over the past decade from Rs 1,01,858 in 2013-14 to Rs 2,04,605 in 2024-25, reflecting the state's sustained economic momentum and the inclusive growth driven by the guarantee schemes.

Siddaramaiah said that when the world "applauds" Karnataka's guarantee schemes as a model for inclusive governance, the opposition remains busy spreading misinformation and negativity.

"Contrary to the sceptics, these schemes have neither burdened the exchequer nor fueled inflation. In fact, by increasing consumption at the bottom of the pyramid, they have stimulated local demand, enhanced revenue buoyancy, and reduced rural unemployment," he said.

The chief minister said this is a model of bottom-up growth, not charity, which is an embryonic form of what economists call a Universal Basic Income (UBI).

"Through these schemes, Karnataka has shown that fiscal expansion can coexist with price stability and equity. The state's per capita income has continued to grow, even as we expanded welfare delivery, proving that growth and justice are not contradictory," he added.

Siddaramaiah recalled that when they first launched the guarantee schemes, political opponents mocked them.

"They called it fiscally irresponsible, a 'freebie culture,' and an election gimmick. But the truth has a way of prevailing. Within months, the same parties began to replicate similar schemes in every poll-bound state without acknowledging their inspiration," he said.

"To those who question the sustainability of these schemes, I say this: the true measure of fiscal responsibility is not how much we save, but how effectively we invest in our people," he said.

He alleged that despite collecting huge revenues through GST and cess from the state, the Centre has denied Karnataka over Rs 2 lakh crore in the past few years, and over Rs 25,000 crore every year.

"The union government has shown clear financial injustice and step-motherly treatment towards Karnataka, as if punishing the people for voting out a corrupt BJP government. Our rightful share, grants, and approvals are being held back, even as we continue to shoulder the welfare needs of our people," the chief minister said. PTI AMP KH