Dressed in a bright pink t-shirt and a lungi, former CM Siddaramaiah spoke candidly to the three Congress MLAs who had come to visit him at the natural therapy centre in Dakshina Kannada district, last week.
The JD(S) should remember that the Congress brought them to power, said the former Karnataka chief minister, adding that JD(S) should retain the budget he had presented ahead of the elections.
This candid conversation was captured in a video.
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While the veteran Congressman might be taking a shot at the budget, he was aiming for the farmer loan waiver, say many within the party.
According to sources, Siddaramaiah, who is aware of the popularity HD Kumaraswamy will gain from the loan waiver, is stalling it through the budget.
Whether he was aware of the mobile phone camera capturing his chat remains unclear, but the video has now spiralled into a political controversy creating tension in Karnataka’s coalition government.
Rejecting the rumours, however, Congress leaders claim Siddaramaiah is batting for his political gains. But there are some others who believe that his actions are in the best interest of the Congress – even if it isn’t the best for the coalition.
The Politics Over the Farmer Loan Waiver
Months before the Karnataka Assembly elections, when asked about the possibilities of a full farmer loan waiver in the state, Siddaramaiah had shot down the idea calling it impractical.
For him, waiving the Rs 8,000 crore worth of farmer loans from cooperative banks was the best the state government could do. He believed that without the Centre’s support, a complete farm loan waiver is unsustainable considering the state of the government treasury.
But after the elections, Kumaraswamy is inching closer to waiving all the farmer loans.
“There is a difference in the thought process of both leaders. Siddaramaiah, a hardcore finance man, is considering the implications of setting aside a large sum for a single project,” pointed out a senior bureaucrat, on the condition of anonymity. But for Kumaraswamy, he said, farmer loan waiver is the priority and the other financial commitments of the state comes next.
Priorities of the State Unit Vs Priorities of High Command
According to senior leaders in the Congress, while the party is striving towards Rahul Gandhi’s vision of creating a united front against the BJP ahead of the 2019 general elections, the party risks losing ground in the state.
If Kumaraswamy manages to fulfill the promise of a complete farmer loan wavier, it would be a slap on the face for the Congress that had claimed such a waiver was impractical.
Many within the Congress fear that the success of a farmer loan waiver will be credited to Kumaraswamy, even though a coalition government would have implemented the scheme. Thus, piggy bagging on power offered by the Congress, Kumaraswamy will be reinforcing his position for the next Assembly elections.
Target Budget to Target Loan Waiver
While going against the decision to waive farmer loans would be a political harakiri for the Congress, so the alternative would be to stall the budget.
Siddaramaiah has his logic. The Congress has 79 MLAs in the government, so the previous budget still remains the government’s promise of schemes and policies. And for the needs of the new JD(S) MLAs a supplementary budget should be presented.
If the previous budget and its schemes are retained, there will be not be enough funds available for Kumaraswamy to announce a Rs 53,000 crore farmer loan waiver.
Only Siddaramaiah has Objected to New Budget
Siddaramaiah has already given a hint on the how he can stall budget as well. The coalition coordination committee is yet to come up with the common minimum programme (CMP), which will ensure that assurances given in the election manifestos of the two parties, will be included in the government’s agenda. The CMP will have to be finalised before 5 July, the day of the budget. This committee is headed by Siddaramaiah.
But only Siddaramaiah has raised objections to the new budget so far. Kumaraswamy, who is building a rapport with Rahul Gandhi, is said to have already consulted the AICC president on the budget.
The budget expected on 5 July is all expected to decide the future of either Siddaramaiah in the party or the coalition government itself.
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