Crumbling infrastructure
Maybe Mr. Shivakumar’s greatest problem can be fixing deep-rooted issues in Bengaluru, the state’s development engine and India’s info expertise hub.
Lengthy earlier than Mr. Shivakumar took cost of the town, the town was synonymous with site visitors congestion and crumbling public infrastructure. With Bangalore accounting for nearly 1 / 4 of the state’s inhabitants, Mr. Shivakumar must rethink the “Model Bangalore” that has turn into a template for city blight.
One quick resolution obtainable to Shivakumar is to prioritize the long-delayed Namma Metro extension. The opposite is to eradicate potholes in Bangalore’s roads and loosen the stranglehold on the “rubbish mafia” that has tarnished the town’s status in recent times.
Mr. Shivakumar will even must forge a deal on the controversial Rs 40,000-crore tunnel street undertaking, which proposes to construct underpasses throughout Bengaluru to scale back commuting instances for vehicles. On common, practically 2,000 new vehicles are created day-after-day in Bangalore, and the variety of vehicles is nearly equal to the full variety of residents.
The chance that an organization led by industrialist Gautam Adani can be awarded the contract to construct the undertaking is one other problem given how Congress chief Rahul Gandhi and his celebration have attacked the tycoon, alleging his shut ties to the Bharatiya Janata Celebration (BJP).
“The subsequent two years are an opportunity for the brand new Prime Minister to undo the cut-and-paste and horrific city mobility plan he as soon as oversaw as Deputy Prime Minister. Bengaluru should stay vigilant and ask the proper questions to stop a generational catastrophe foisted on us within the title of improvement,” mentioned unbiased mobility professional Satya Alikutram.
Professor Ashish Verma’s Transport Engineering Laboratory on the Indian Institute of Science (IISc) beforehand instructed ThePrint that the hole between transport demand and provide is deepening. He mentioned increasing transport provision by means of street infrastructure wouldn’t be sustainable in the long run and would improve cities’ reliance on vehicles (or personal vehicles), to the detriment of public transport customers and other people strolling and biking.
Neighboring states like Andhra Pradesh and Telangana are wanting to make the most of Bangalore’s infrastructure issues and outdated insurance policies by encouraging entrepreneurs and companies to relocate. By addressing Bangalore’s infrastructure issues, the Shivakumar-led authorities might halt these advances and protect the town, and Karantaka, as one in every of India’s most sought-after funding locations.
With no elected parliament in Bangalore since September 2020, all of the duty and honor will inevitably fall in entrance of Mr. Shivakumar.
Outstanding business leaders like Kiran Mazumdar Shaw and TV’s Mohandas Pai are amongst those that have been continually sounding the alarm about these points, solely to obtain assurances in return. Mr. Shivakumar will now must go above and past these guarantees to assist the Congress defeat Bengaluru, which has largely supported the Bharatiya Janata Celebration in state, central and native elections.
Mr. Shivakumar reconstituted the town’s civic physique from the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) to the Higher Bengaluru Authority (GBA) and divided it into 5 companies for higher governance and efficient administration. Conducting and profitable the GBA and concrete native elections can be Mr Shivakumar’s first job earlier than going to the meeting polls scheduled for 2028.
Additionally learn: From Sathanur to Bidadi, how the Shivakumar-Deve Gowda rivalry formed Karnataka politics in 40 years
development debt mannequin
Outgoing chief minister Siddaramaiah had been the face of Congress welfare model politics since 2013, which has since morphed right into a 2023 ‘assure’. After assuming workplace in 2023, Mr. Shivakumar mentioned there can be no funding for improvement as a good portion has been put aside to satisfy key assure schemes.
The Siddaramaiah-led authorities has to date spent Rs 1,39,123 crore on implementing the 5 ensures, forcing the federal government to chop funding for different applications and depend on debt for infrastructure building.
Karnataka’s whole debt is estimated to cross Rs 11,200 crore within the subsequent 4 years, in response to an evaluation by ThePrint.
For the reason that starting of this century, it has turn into frequent for the prime minister to carry the fiscal portfolio. Identical goes for Shivakumar. He’ll take over the state’s nascent funds, however should announce new plans, improvement tasks and the completion of present tasks earlier than heading to the state poll in 2028.
“After fully destroying Karnataka’s financial system, Siddaramaiah quietly walked away abandoning a broken-down truck pushed by DK Shivakumar! This isn’t a sleek ‘change of warning’. It’s a calculated and despicable escape from an financial disaster of his personal making!” Opposition chief R. Ashoka posted on Tuesday.
He added that the state is sinking right into a sea of insurmountable debt and public improvement has come to an entire standstill.
As per Finances 2026-27, Karnataka’s whole debt is predicted to achieve Rs 8,243.89 billion by the top of the present fiscal, which is 24.94 per cent of its gross home product (GSDP). The state maintains the 25 per cent debt ceiling mandated by the Karnataka Fiscal Duty Act (KFRA), 2002, however solely simply barely.
In response to the funds, the present fiscal income deficit is estimated at 22,957 billion rupees and the funds deficit is 97,449 billion rupees. The fiscal deficit is 2.95% of GSDP, which is beneath the KFRA restrict of three%, however solely marginally.
In response to the 2026-27 funds, for each rupee that goes into the exchequer, 20 paise can be earmarked for debt servicing. Which means that one-fifth of your earnings can be used to pay curiosity in your debt.
In response to the Medium Time period Monetary Plan (MTFP), by the point Shivakumar heads to the 2028 meeting elections, the full debt is predicted to rise to Rs 10,177.56 billion in 2028-29, equal to 23.60% of GSDP, suggesting the borrowing sample will proceed.
The federal government is contemplating introducing new insurance policies and financial reforms, together with a parking coverage, the introduction of London mannequin congestion prices, using company social duty funds, and a rise in web property tax to finance improvement. Nonetheless, as the quantity borrowed will increase, extra funds are put aside solely for debt compensation.
Because the mortgage quantity will increase, the rate of interest additionally will increase.
Curiosity funds alone are estimated to extend to 53,332 million rupees in 2026-2027 (funds estimates). In response to MTFP, by 2029-30, Karnataka’s fiscal deficit is predicted to achieve Rs 1,11,440 crore. Mr. Shivakumar might want to discover methods to boost more cash to fund concepts corresponding to a second airport, tunnel roads, irrigation tasks and different improvement works.
Continued commitments to ensures additionally sign a sample of decreased budgets for capital expenditures and long-term asset creation investments that assist create jobs and development. Shivakumar, who has lengthy been often called the Congress’s “cash bastard” for his skill to handle celebration funds, will now want to include these abilities into his administration of the state’s funds.
Regional imbalance
Karnataka is inconsistently developed, with regional imbalances favoring Bengaluru and the southern districts of the state. In response to the newest financial survey, there’s a practically 500 per cent distinction between Kalaburagi, the district with the bottom per capita earnings, and Bengaluru.
Karnataka’s per capita earnings in 2025-2026 is estimated at Rs 4,33,326 at present costs, registering a rise of 12.2 per cent as in comparison with Rs 3,86,156 in 2024-25. Despite the fact that Karnataka’s per capita earnings is 97% larger than the nationwide common of Rs 2,19,575, the info reveals that disparities within the southern state have elevated considerably.
Wanting on the district-wise breakdown for 2024-25, Kalaburagi’s per capita earnings is at Rs 1,44,449, whereas Bengaluru tops the checklist at Rs 8,55,960. Bengaluru contributes over 40 per cent to the state’s gross home product, whereas Dakshina Kannada and Belagavi are in second and third place with 5.3 per cent and three.8 per cent, respectively.
The imbalance is critical, with solely 5 out of 31 districts incomes greater than the state common of Rs 386,156, in response to the info. Kalaburagi, the hometown of All India Congress Committee (AICC) president Mallikarjuna Kharge and her son MP Priyank, is a part of Kalyana Karnataka, one of the crucial backward areas within the nation.
For the reason that early Seventies, a give attention to Bengaluru and careless neglect of different districts has widened the hole in per capita earnings.
This pressured them emigrate to cities. Corrective insurance policies like “Past Bengaluru” have few takers because of the existence of an ecosystem constructed over many years that neither personal corporations nor governments have tried to alter.
Cities like Mangaluru, beforehand depending on ports, delivery and oil refineries, have since diversified into the data expertise sector on their very own, with little or no authorities involvement.
Mr. Shivakumar wants to deal with this imbalance as quickly as attainable to place in place insurance policies that promote equitable improvement.
Additionally learn: DK Shivakumar — the “rock” on the door of energy. What it means for Karnataka and Congress
curse of request
The Congress authorities has used the “40% fee” allegations towards the Basavaraj Bomay-led Bharatiya Janata Celebration authorities as the premise for the 2023 polls. The Siddaramaiah-led authorities had even arrange a committee to look into the allegations. Nonetheless, these claims stay a continuing function of the present administration.
The Karnataka State Contractors Affiliation (KSCA), which had raised allegations towards the Bharatiya Janata Celebration authorities, accused the Siddaramaiah authorities of continuous the identical follow. In September final yr, KSCA president R. Manjunath had claimed that the affiliation had performed a key function in bringing the Congress to energy.
“Every time you (learn Siddaramaiah) give us assurances and direct authorities to behave. Out of respect for you, we’ve been affected person within the hope that you’d resolve our issues. However to date we’ve obtained no advantages out of your authorities,” they wrote. They even claimed that the fee charge has doubled in comparison with the earlier BJP authorities.
Mr. Shivakumar took workplace amid rising requires “charges” and bribes to waive funds for accomplished work, with contractors offended that funds for earlier work weren’t waived.
political points
Aside from infrastructure and governance-related points, Shivakumar additionally has his eye on a lot of political points. Though Mr Siddaramaiah has resigned, the 77-year-old retains the facility to demand vital portfolio allocations, together with the entry of his son Yashindra into the cupboard. This poses a big problem for Mr. Shivakumar, who might not have unfettered authority over his cupboard, creating issues with a number of energy facilities and doubtlessly exacerbating coverage paralysis.
Shivakumar will even have to carry long-delayed GBA and concrete native physique elections, his first take a look at as chief minister. He additionally hails from the dominant Vokkaliga neighborhood and had earlier opposed the discharge of the caste census, which works towards the social justice agenda professed by Rahul Gandhi and Siddaramaiah. The day earlier than Chief Minister Siddaramaiah resigned, his authorities accepted the second report of the Socio-Financial and Academic Survey, or caste census, and it’s as much as Mr. Shivakumar to announce the findings and stick with the celebration’s core platform of social justice.
The inner reservations claimed by the federal government consequently have left a number of extraordinarily backward courses unrepresented and overshadowed by bigger teams throughout the Scheduled Caste (SC) class. The HN Nagamohan Das Committee had initially really helpful that the federal government put aside 1 per cent of inner reservations for 59 nomadic, semi-nomadic and micro-communities. Nonetheless, Siddaramaiah withdrew this proposal and grouped Banjara, Bovi, Korama, Kolacha and different nomadic communities into one class with a 4.5 per cent quota, a single bloc, inflicting disillusionment amongst them.
“They’re changing into more and more depending on minorities as a result of the mainstream communities should not catering to them,” creator and analyst Sugata Srinivasuraju instructed ThePrint earlier.
Minorities have additionally overtly expressed their dissatisfaction with the Congress, particularly after polls in southern Davangere confirmed it being disrespected. Muslims have accused Congress of taking Islam without any consideration. Muslim leaders at a current conference in Bengaluru accused the Congress of not taking motion towards communal and hate-mongering organizations just like the Bajrang Dal and alleged that the celebration was enjoying smooth Hindutva. The Congress authorities has not but repealed legal guidelines banning cow slaughter or spiritual conversion. In addition they object to the state not resisting the proposed Particular Intensive Revision (SIR) within the state.
Lastly, Shivakumar must emerge from Siddaramaiah’s shadow though Siddaramaiah is prone to maintain many of the cupboard quotas. Earlier than the brand new prime minister appeals to the individuals and seeks a second time period, he might want to steadiness the expectations of his cupboard and celebration members, who’ve been demanding a rise in funds allocation to point out indicators of progress.
(Edited by Naldeep Singh Dahiya)
Additionally learn: “I’m 100% a politician,” mentioned Siddaramaiah, Karnataka’s longest-serving CM, in 2017.
