'PM Modi used BCG to...': Karnataka minister reacts as BJP slams state govt for hiring US-based consultant

Karnataka Chief Minister Siddaramaiah, KC Venugopal and Dinesh Gundu Rao, during the Karnataka Congress Legislature Party (CLP) meeting in Bengaluru in 2019.

Karnataka Health Minister Dinesh Gundu Rao defended the state government's move to hire a US-based consulting firm to oversee the state's finances. He said, "Even PM [Prime Minister Narendra] Modi has used BCG [Boston Consulting Group] to prepare a blueprint of his vision for 2047..."

Rao's comments came a day after Karnataka BJP chief BY Vijayendra condemned the state government's decision as "outrageous" and "akin to handing over the reins to the East India Company."

"...The Karnataka Congress government is effectively declaring itself unfit & incompetent. When the State Government operates under the directions of an external agency, the welfare of the people takes a backseat, and innocent citizens are the ones who suffer!," Vijayendra posted on X on Thursday.

Karnataka minister defends hiring BCG company

Rao reacted to the criticism on Friday, saying that the Boston Consulting Group “is a recognised group across the world." He said, "Even PM Modi used the Boston Consulting Group to prepare his Vision 2024 blueprint."

He claimed that former Karnataka Chief Ministers BS Yediyurappa and Basavaraj Bommai used this group. " Not only BCG, but so many other groups like McKinsey, KPMG, and Deloitte...," Rao told ANI.

The Congress leader further informed that governments and non-government use the groups' services to "get feedback, information and also to take their advise on latest thing there and how we can improve our systems".

"So if he talks foolishly, it just lacks knowledge, that's all we can say," Rao said while responding to the Karnataka BJP chief's remarks. He said "bogus and stupid kind of remarks" were being made by the state BJP president.

The Congress-led Karnataka government recently roped in BCG as a consultant to help with suggestions to boost its revenue. According to the Money Control report, BCG will work with the state finance department for six months and has quoted a fee of around ₹9.5 crore.

The report added that BCG has also started working with the finance department to streamline expenditures in tenders across major departments.

The company has not commented on the controversy yet.