Karnataka Chief Minister Siddaramaiah, while presenting the state budget for 2023, addressed the opposition's criticism of the government's five guarantees and said that these schemes should not be called ‘freebies’. Speaking in the assembly on Friday, July 7, Siddaramaiah urged the opposition to fulfill their role responsibly without insulting the wisdom of the common people. The five schemes by the government- Gruha Jyothi, Gruha Lakshmi, Sakthi, Yuva Sakthi and Annabhagya-  has been slammed by the opposition as freebies meant to retain vote banks, meanwhile draining the exchequer, 

Siddaramaiah emphasised that the guarantee schemes were not just handouts but an effort to provide economic security to marginalised sections of society. Quoting Babasaheb BR Ambedkar, Siddaramaiah highlighted the importance of an economic plan that guarantees security and aims to bridge the gap created by unequal distribution of resources. He further explained that cash transfers to the poor, especially women, have proven to be effective in empowering them and improving their purchasing power.

Siddaramaiah elaborated on the five guarantee schemes of the Congress government, stating that Gruha Lakshmi (Rs. 2000 per month for one woman per household) and Gruha Jyothi (free electricity upto 200 units) would provide relief to families affected by inflation caused by central government policies. The Shakti scheme (free bus rides for women), apart from enabling women to save money, would enhance their mobility and expand employment opportunities. Annabhagya (free 10 kg food grains for poor) would ensure that no one in the state goes hungry, while Yuvanidhi (stipend for educated unemployed youth) would provide mental strength to youth aspiring for jobs.

Under the five guarantee schemes, the government plans to spend approximately Rs. 52,000 crore per year, benefiting around 1.30 crore families. This translates to an average additional financial assistance of Rs. 4,000 to Rs. 5,000 per month, totaling Rs. 48,000 to Rs. 60,000 annually per household. Siddaramaiah emphasized that this initiative aimed to provide a Universal Basic Income, the first of its kind in the country.

Highlighting the disparity between GST collection and profit distribution, the Chief Minister emphasised the need for pro-people governments to implement policies that redistribute resources to uplift the poor and marginalized.

“Though the major share of GST collected comes from the bottom 60% people of society, most profits of the economic system go to top 10% people of society.  Therefore, pro-people governments should follow policies that re-distribute the resources among the poor,” Siddaramaiah said in his speech.