Karnataka's debt surged to ₹63,000 crore in the fiscal year 2023-24, marking an increase of ₹37,000 crore from the previous year, according to a Comptroller and Auditor General (CAG) report presented in the Karnataka Assembly. The report highlighted concerns over the diversion of ₹5,299 crore from infrastructure funds to finance five guarantee schemes, which contributed to a 12.5% rise in welfare spending and widened the state's fiscal deficit. The ruling Congress government, led by Chief Minister Siddaramaiah, has faced criticism from opposition BJP leaders and other political figures for financial mismanagement and inadequate development work. BJP MLA Dr. Bharath Shetty Y pointed to a 20% increase in government borrowing compared to the previous year and expressed concerns about the state's ability to pay salaries. BJP leader Gali Janardhana Reddy and JD(S) leader CB Suresh Babu warned of the growing fiscal burden and crisis due to continued borrowing. In response, Karnataka Minister MB Patil defended the government's financial management, emphasizing Siddaramaiah's experience and careful consideration of fiscal responsibilities. Additionally, the Karnataka State Contractors’ Association has raised allegations of corruption and political issues related to unpaid bills. On infrastructure, Transport Minister Ramalinga Reddy countered BJP allegations about road development funding, stating that around ₹800 crore worth of concrete road work is underway despite ongoing pothole complaints. The Karnataka Legislative Council Leader of Opposition, BJP's Chalavadi Narayanaswamy, criticized the government's failure to implement promised internal reservation reforms and the Sadashiva Aayog recommendations.