D K Shivakumar tells Karnataka contractors govt will pay as per budget

Deputy Chief Minister D K Shivakumar said the Karnataka government would clear contractors’ dues only as per budget provisions, responding to a strike threat over pending bills. He blamed the previous BJP government for financial mismanagement and assured payments based on available funds

Bengaluru: Deputy Chief Minister D.K. Shivakumar on Wednesday responded sharply to the Karnataka State Contractors’ Association’s threat to launch a statewide strike on March 5 over alleged unpaid bills of nearly Rs 37,000 crore to Rs 37,370 crore, stating that the government would release payments only as per budgetary provisions.

Speaking to reporters in Bengaluru, Shivakumar challenged the contractors to go ahead with their proposed strike if they wished.

---

“Let the contractors file a complaint in this regard. Let them stop the work over the non-payment of more than Rs 30,000 crore in pending bills. Who gave them these works? During the previous BJP government, I had appealed to contractors not to take up works as there was no money with the government. Why did they take up the works?” he said.

He alleged that during the tenure of the previous BJP government, works were awarded without proper financial backing and without approval from the Finance Department.

“If only Rs 2,000 crore worth of work was available in a department, tenders were called for works amounting to Rs 30,000 crore to Rs 40,000 crore,” he claimed.

Blaming the previous government for the current situation, Shivakumar said the pending dues were a result of financial mismanagement.

“The previous BJP government is responsible for this mess. Now they are demanding clearance of bills. I ask them why they took up the work in the first place. In my department, I can state the facts. They should have taken up only those works for which budgetary provisions were available. I had called the contractors and extended as much help as possible,” he said.

He acknowledged that contractors were facing financial difficulties but reiterated that payments would be made in accordance with available funds.

“Yes, they need money. But when they knew there were no funds, why did they take up the works? Whoever wants to stop the work may do so. Let them do what they want. The government is making payments as per the allocated budget provisions. Even now, we will release funds to the extent possible,” he said.

“We also have humanity. Let us see how their problems can be addressed. But if they choose to blackmail us, let them do it,” he added.

Shivakumar also spoke about his scheduled visit to Assam, saying he would travel there on Thursday after postponing his earlier plan. He has been appointed as the AICC Special Observer for Assam.

Meanwhile, the Karnataka State Contractors’ Association has announced a statewide strike on March 5, 2026, alleging that unpaid dues of nearly Rs 37,000 crore to Rs 37,370 crore for development works across the state remain pending.

The association has alleged large-scale irregularities and accused the government of failing to clear long-pending bills despite repeated representations. Contractors have demanded immediate release of funds, warning that work on development projects would be halted if their demands are not met.

According to the association, the Water Resources Department and the Public Works Department account for a substantial share of the pending payments. The association has stated that continued delays are pushing many firms into financial distress and affecting workers dependent on government contracts.

The proposed strike, the association said, would cover all districts of Karnataka if the dues are not cleared.