SM Krishna: Harbinger of reforms in all aspects of Karnataka administration

Somanahalli Mallaiah Krishna, or SMK, was one of Karnataka’s most educated, polite, cultured and soft-spoken politicians, who served as a member of both houses of the Karnataka Legislature and the Indian Parliament. He was a harbinger of reforms in all aspects of Karnataka administration.

When he took over power from the JH Patel-led Janata Dal government in 1999, Karnataka’s economy was in a difficult situation. When the Congress secured power under his leadership, Mr. Krishna became the Prime Minister (1999-2004). It opened the door to closer collaboration with the World Bank, civil society organizations and industry experts in introducing reforms. He was instrumental in introducing a number of reforms in tax and public expenditure management, governance, private sector development, and poverty and human development monitoring.

SM Krishna (1932-2024) | A life in pictures

A picture of SM Krishna published in The Hindu on January 30, 1983. He was then part of the Congress-I from Mandya constituency

Vetaran Congress leader SM Krishna is greeted by his well-wishers at his residence on his 83rd birthday.

Bill Gates, Chairman and Chief Software Architect of Microsoft Corporation (centre), arrives with Infosys Narayana Murthy (left) and Karnataka Chief Minister Mr SMKrishna at the Infosys Campus in Electronics City.

SMK with Salman Khurshid

SM Krishna spotted with Kannada actor Dr. Rajkumar after he was released by forest robber Veerappan, who kidnapped him in 2002.

SM Krishna with MK Karunanidhi, the then Tamil Prime Minister, seen with R. Gopal, the editor of the Tamil magazine ‘Nakkheeran’.

The matinee idol of Karnataka, Dr. Rajkumar, greets the audience and fans after receiving the ‘Karnataka Ratna’, the highest state honor, from the Governor of Karnataka, Mr. Khurshed Alam Khan, in Bangalore on November 14, 1992. Karnataka Chief Minister Mr S Bangarappa (right) and Assembly Speaker Mr SM Krishna (far left) are also seen.

SM Krishna addresses a press conference as Chief Minister of Karnataka at Vidhana Soudha in January 2002.

SM Krishna, Mallikarjun Kharge and other ministers look at the map of the proposed Devanahalli International Airport in Bengaluru.

Former chief ministers S M Krishna, S Bangarappa, N Dharam Singh and Mallikarjuna Kharge are leaders of opposition in the legislative assembly during the Bharat Nirman rally at the MBA ground in Davangere on March 23, 2009.

Congress President Sonia Gandhi and Prime Minister SM Krishna greeted the crowd during a public meeting in Kolar in 2004.

SM Krishna inspects work progress at Vikasa Soudha in Bengaluru in 2004.

SM Krishna and veteran tennis player Vijay Amritraj at an event at KSLTA in Bengaluru.

SM Krishna addressed the gathering on the 125th anniversary of The Hindu at Ambedkar Bhavan, Bangalore on November 8, 2003. Also seen are (from left) Azim Premji, chairman of Wipro and N. Murali, joint managing director of The Hindu, N. Ram, editor-in-chief of The Hindu, Jagadish Shettar, leader of opposition in Karnataka -Assembly and UAnanthamurthy, well-known writer.

Pandit Jasraj is felicitated by SM Krishna along with violinist L. Subramaniam in Bangalore on January 20, 2004.

Chief Minister SM Krishna and PWD Minister Dharam Singh inspect the progress of work at Vidhana Soudha South Block in Bengaluru on August 4, 2003.

Cricketer Sachin Tendulkar is awarded by Prime Minister SM Krishna at the inaugural ceremony of the Rajiv Gandhi Yuva Shakti Sangha in Bengaluru in August 2003.

President Droupadi Murmu presents Padma Vibhushan to former Union Minister SM Krishna during Padma Awards 2023 ceremony at Rashtrapati Bhawan in New Delhi.

Former Prime Minister HD Devegowda consoles former Chief Minister SM Krishna and his family members at his residence in Bengaluru after his son-in-law VG Sidartha went missing in Mangaluru.

Then on May 8, 2012, US Secretary of State Hillary Clinton called SM Krishna during his tenure as Foreign Secretary in New Delhi.

President Barack Obama (left) stands with Secretary of State Hillary Rodham Clinton as Indian Foreign Minister SM Krishna speaks during a U.S.-India Strategic Dialogue reception at the State Department in Washington on June 3, 2010.

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During his tenure, the attendance stamp system was introduced in major government offices including Vidhana Soudha. The DM Nanjundappa Committee was formed to address regional imbalances. He believed that Karnataka could prosper and progress only if equal importance was given to urban and rural areas.

Extensive reforms

During his rule, Karnataka created a legal framework for reform by enacting laws and charging user fees in the health and irrigation sectors. Karnataka was the first state to enact the Fiscal Responsibility and Budget Management Act (FRBM) in 2002.

In view of the many problems in the power sector, the Karnataka Electricity Reform Act was enacted in 1999. The Karnataka Electricity Board was dissolved and KPTCL was incorporated in June 2002 under the Companies Act.

Karnataka has institutionalized the annual cycle of the Medium Term Financial Plan (MTFP). Notable laws included the Karnataka Transparency in Public Procurement Act, 1999 and the Karnataka Industries (Facilitation) Act, 2002, which was amended in 2015, mandating a central government-industry interface and setting deadlines for regulatory approvals, passed during his tenure.

The Krishna government set up expert committees on Panchayat Raj (1999), Administrative Reforms Commission (2001), Tax Reforms Commission (2000) and Tax Reforms Commission (2002) to make the administration efficient, effective, transparent, responsive and accountable close. Task Forces comprising eminent personalities from professional, private and civil society organizations were constituted in almost all sectors to carefully study the comprehensive development of Karnataka and make recommendations to promote comprehensive development.

In his time, e-government was introduced in the delivery of public services in all cities and towns, citizenship certificates were widely displayed in government offices, and online complaints and public hearing systems were introduced to address grievances in the delivery of services. E-governance projects such as Bhoomi, Khajane, Kaveri and Mahithi service centers (in Bengaluru they are known as BangaloreOne centers) have been implemented.

Competing with then Andhra Pradesh Chief Minister Chandrababu Naidu for investments, the Krishna government opened the doors to PPPs in the infrastructure sector – construction of roads, airports, power plants, waste management, health and education, and bill collection for essential services.

In 2003, the World Bank held its Annual Banking Conference on Development Economics (ABCDE) in Bengaluru, which was the first time the event was organized outside Washington.

Special place for Bengaluru

It is argued that SM Krishna’s advocacy for reforms and his willingness to grant autonomy to agency heads, along with the strong support of the Bangalore Agenda Task Force (BATF), encouraged agency heads to show interest in implementing reforms . Not only was the BATF a model followed by other Indian cities, but the concept was also introduced to other donor countries by the World Bank. The Krishna regime used the BATF to deflect criticism of projects and policies by leveraging members’ intellectual reputation.

The Bengaluru City Corporation introduced a popular and optional Self-Assessment System (SAS) for property tax payment, which not only reduced corruption by cutting red tape but also significantly increased revenue during his tenure.

During Krishna’s tenure, work began on the international airport in Bengaluru, the expansion of the outer ring road around the city, and most flyovers, underpasses, bridges and grade dividers. The garden city of Bengaluru is particularly close to his heart.

His commitment to implementing reforms contributed to a notable improvement in the state’s fiscal position in 2005-2006. The average collection rate of all taxes increased from 97% of budget estimates in 2001 to 106% in 2006. In 2006, the state government had withdrawn from the bank loan. The additional revenue was used for the construction of roads, flyovers, ring roads, housing estates and apartment complexes without burdening the state treasury.

CM at the wrong time?

Mr. Krishna perhaps became Prime Minister at the wrong time in some ways. The administration faced many difficulties in 2001-2002 as the government was busy resolving the Cauvery river water sharing dispute with Tamil Nadu. The abduction of Kannada matinee idol Dr. Rajkumar and his release after 109 days in captivity, as well as the assassination of former minister H. Nagappa and the resulting public outcry, consumed the government’s time and energy. The vagaries of the monsoon led to farmers committing suicide. Lord Krishna was truly paralyzed and unable to fully realize his vision.

“If he had taken over the leadership of the state government perhaps a decade earlier or perhaps later, he would certainly have fared much better. But then the real Krishna may not have come to the fore. Because it is only when one faces adversities and difficult challenges that one realizes true courage,” said veteran journalist Gabriel Vaz, who closely observed Krishna’s tenure at the helm.

Despite these difficulties, many believe that Karnataka has made significant progress in terms of a variety of reforms.

Many strongly believed that Mr. Krishna had “misjudged” the mood of the voters when he opted for the assembly elections six months before the end of his term, coinciding with the 2004 Lok Sabha elections. In the 2004 assembly polls, apparently “dissatisfied” urban voters and “neglected” rural voters ousted the Congress and Chief Minister SM Krishna.