Former Infosys CFO Mohandas Pai has taken a sharp swipe at Karnataka CM Siddaramaiah, warning that the state is heading toward a financial crisis due to excessive freebies and mounting debt.
Taking to X, Pai wrote, “Our Karnataka CM Siddaramaiah's policies too are ruining Karnataka future, 2 years of huge revenue deficit - ₹21,000 cr+ for 24-25 and ₹19,000 cr+ for 25-26. Essentially borrowing loans to pay for freebies. Need to eliminate freebies for undeserved group.”
He also criticised the government’s tax hikes, saying they are hurting taxpayers and the productive parts of the economy. Bengaluru, the state's economic hub, is bearing the brunt of mismanagement, Pai claimed.
“Bengaluru the jewel in the crown getting shafted by lack of pothole-free roads, unclean roads, bad traffic. Economic/social policies need a massive relook, cut costs, focus on jobs, infra for jobs. Freebies only for real poor, not for 60%+ citizens.”
Pai warned that by the time Siddaramaiah’s government completes its term, Karnataka could face serious economic setbacks unless a mid-course correction is made.
Pai’s criticism comes as Telangana CM Revanth Reddy admitted to a severe cash crunch in his state, revealing that the government is struggling to pay salaries and is seeking a ₹4,000 crore hand loan from the Reserve Bank of India.
At the India Today Conclave 2025, Reddy made an admission: “I have no money for capital expenditure. What will happen to the nation in the coming days?”
He explained that while Telangana earns ₹18,500 crore per month, most of it is spent on recurring expenses. ₹6,500 crore goes to salaries and pensions, ₹6,500 crore is used for debt repayment, leaving just ₹5,000 crore for welfare and development.
“After I sat on the Chief Minister’s chair, I got to know the truth,” Reddy said, calling for a nationwide discussion on the sustainability of welfare policies.