MC Impact | Congress divided over Karnataka move to hire BCG, senior leader Praveen Chakravarty fumes

Under pressure to mobilise Rs 50,000 crore-Rs 60,000 crore annually to implement five poll guarantees and fund development projects, the Congress-led Karnataka government recently roped in BCG as a consultant to help with suggestions to boost its revenue.

The Congress party appears to be divided over the Karnataka government's decision to hire Boston Consulting Group (BCG) as a consultant for six months at a cost of Rs 9.5 crore.

Also, read: Rs 9.5 crore fee for 6 months: Inside the terms of Karnataka govt’s deal with Boston Consulting Group

Praveen Chakravarty, chairman of  Professionals’ Congress & Data Analytics, quoted the Moneycontrol report while taking to X: "If one wins elections by outsourcing core political functions to external fee charging transactional consultants, then one also governs by outsourcing core policy functions to similar consultants!"

If one wins elections by outsourcing core political functions to external fee charging transactional consultants, then one also governs by outsourcing core policy functions to similar consultants!https://t.co/O7xgk3T1mZ

— Praveen Chakravarty (@pravchak) June 20, 2024

Tamil Nadu Congress leader and party spokesperson R Mohan Kumaramangalam reacted on X: "A data thief turned data fudger/and self-declared consultant who manufactured data to mislead the congress leadership in 2019 and has since been masquerading as a politician is calling out real politicians for using the services of capable consultants. Hilarious".

A data thief turned data fudger/and self declared consultant who manufactured data to mislead the congress leadership in 2019 and has since been masquerading as a politician is calling out real politicians for using the services of capable consultants. Hilarious https://t.co/E4sYU4HM0Q

— Mohan மோகன் (@MKumaramangalam) June 20, 2024

All India Professionals' Congress Karnataka was quick to distance itself from its national chairman Praveen Chakravarty. "The professionals' community aligned with the Congress party in Karnataka, would like to make it clear that we don't agree with the opinions expressed by @pravchak
the chairman of @ProfCong against our govt in Karnataka. (1/2)", it wrote on X.

The professionals' community aligned with the Congress party in Karnataka, would like to make it clear that we don't agree with the opinions expressed by @pravchak the chairman of @ProfCong against our govt in Karnataka. (1/2)@siddaramaiah @DKShivakumar @kharge @rssurjewala https://t.co/cUwSpUb1iN

— AIPC Karnataka (@ProfCongKAR) June 20, 2024

Many BJP leaders too criticised the move. Quoting Moneycontrol's article, BJP state president Vijayendra Yediyurappa wrote on X: "Outrageous decision by the @siddaramaiah government to hire a foreign consultant to oversee our State's finances. This is akin to handing over the reins to the East India Company!"

Outrageous decision by the @siddaramaiah government to hire a foreign consultant to oversee our State's finances. This is akin to handing over the reins to the East India Company!

The @siddaramaiah government is disrespecting the State electorate and insulting them for electing… pic.twitter.com/rP6rIJoj3J

— Vijayendra Yediyurappa (@BYVijayendra) June 20, 2024

"The @siddaramaiah government is disrespecting the State electorate and insulting them for electing this government. The @INCKarnataka
government is effectively declaring itself unfit & incompetent. When the State Government operates under the direction of an external agency, the welfare of the people takes a backseat, and innocent citizens are the ones who suffer! The recent fuel price hike is just the beginning!" he added.

Karnataka BJP leader of the opposition R Ashoka wrote: "What is the need of the Boston Consulting Group when a self-proclaimed economist like  @siddaramaiah is the Chief Minister of the state? Not sure whether it will boost the revenues of the State Government, but it will definitely boost the revenues of private consultancy firm at the cost of Karnataka's tax payers."

Under pressure to mobilise Rs 50,000-60,000 crore annually to implement five poll guarantees and fund development projects, the Congress-led Karnataka government recently roped in BCG as a consultant to help with suggestions to boost its revenue.

The consultant's tasks included identifying initiatives to enhance both tax and non-tax revenues, trim expenses, explore innovative funding sources, foster public-private partnerships (PPPs), utilise technologies to plug leakages, and monetise assets. Focused interventions will target four key departments: irrigation, energy, public works, and rural development, while also exploring new revenue sources in departments, such as mining and forests.

Also, read: Karnataka govt ropes in Boston Consulting Group to boost revenue amid poll guarantee schemes

Karnataka finance department officials claimed that the Union government and other states are also hiring the services of agencies like BCG.

Last year, the Union government engaged BCG to help prepare the Vision 2047 document (Viksit Bharat). In 2020, BCG advised the Andhra Pradesh government on decentralised development across all regions, in contrast to McKinsey's involvement under the previous N Chandrababu Naidu-led state government in 2016 to mobilise private and global financing for Amaravati.

In 2017, NITI Aayog announced plans to hire consultancy firms, including BCG, for time-bound projects. Recently, the Goa government enlisted BCG to prepare the vision document 'Viksit Goa @ 2047'. Last year, the Tamil Nadu government selected BCG to "develop an overall strategy and roadmap for Tamil Nadu to realise the vision of a $1-trillion economy".

Also, read: After five poll guarantees, Karnataka to hire private consultant to increase tax collection & plug leakages