The Congress party has come to power in Karnataka by securing a historic verdict. Rahul Gandhi, Siddaramaiah, DK Shivakumar and Mallikarjun Kharge have been praised for showing "exemplary leadership".
The party came to power on the back of tall promises. As per an estimate, the Grand Old Party's five flagship promises to the public can potentially cost the exchequer over Rs 50,000 Cr per annum.
The BJP government managed the fisc in a tight manner. As a result, the Fiscal Deficit of the State stands at 2.6%. If the Congress government were to shell out Rs 50,000 Cr from the first year of its office, the FD will shoot to 4.9% of the GSDP.
Maintaining fiscal discipline while meeting the promises made to voters is a tough job for any populist government. If the Congress government, which is going to assume office soon, manages to do a balancing act, it will set an example. Otherwise, it will incur voters' wrath in 2028.
