Bengaluru: The Karnataka state government’s financial management for the year 2024-25 has come under intense scrutiny as startling statistics reveal that an alarming sum of Rs. 29,884 crore remains unspent across seven key departments. As the state approaches the end of November, critical funds allocated for various developmental programs, public welfare initiatives, and essential infrastructure projects remain dormant. These revelations point to significant inefficiency, mismanagement, and possibly a failure of governance at multiple levels.
The findings were disclosed during the Karnataka Development Programme (KDP) meeting, which took place 15 days back under the chairmanship of the Chief Secretary of government. In this meeting, departmental expenditure reports for the current fiscal year were reviewed. What stands out is the scale of underutilization of allocated funds, with major departments such as Urban Development, Health and Family Welfare, Education, and Finance exhibiting disturbingly low spending rates.
The Scale of Unspent Funds
According to the data presented in the KDP meeting, the state government has failed to utilize a massive Rs. 29,884 crore allocated to key sectors like Education, Finance, Rural Development, Urban Development, Housing, Health, and Higher Education as of November 16. This delay in expenditure is not a mere administrative oversight but an ongoing trend that threatens to undermine essential public services and development projects across the state.
Among the most significant areas of concern is the School Education and Literacy Department, which has a total budget of Rs. 37,457.19 crore for the fiscal year 2024-25. Of this, only Rs. 17,914.96 crore has been spent by November 16, leaving Rs. 5,419.59 crore unutilized. While funds for basic needs like teacher salaries and government school maintenance were allocated, large amounts remain idle. This delay directly impacts the education system, risking delays in salary payments to teachers and stalling various schemes that aim to uplift the state’s education infrastructure.
Similarly, the Finance Department, which oversees critical expenditures such as pensions, retirement schemes, and employee welfare, has not spent Rs. 8,370.53 crore of the Rs. 34,167.88 crore released. With pension disbursements and benefits pending, this is an alarming failure in ensuring the timely welfare of retired employees and pensioners, many of whom depend on these payments for their survival.
The Health and Family Welfare Department has similarly failed to utilize a significant portion of its budget. Despite being allocated Rs. 11,185.90 crore, only Rs. 6,299.60 crore has been spent, leaving Rs. 1,250.29 crore unutilized. In the face of an ongoing healthcare crisis, exacerbated by the pandemic, the delay in spending on essential health services and schemes such as Ayushman Bharat and the Pradhan Mantri Jan Arogya Yojana calls into question the government’s commitment to the health and well-being of its citizens.
Urban Development: A Blatant Failure of Governance
Perhaps the most glaring example of financial mismanagement is the Urban Development Department, which has faced severe delays in spending despite the allocation of substantial sums for critical infrastructure projects. Out of the Rs. 19,710.46 crore allocated, only Rs. 7,372.62 crore has been released and spent, with a staggering Rs. 1,962.39 crore left unspent as of November 16. This department is responsible for overseeing major urban infrastructure projects, including roadworks, sanitation, water supply, and drainage systems.
Projects that were meant to address urban issues like the Bengaluru Suburban Railway Project, Cauvery Water Supply Phase V, and the Swachh Bharat Nagar initiatives have seen minimal expenditure, and as a result, the residents of Bengaluru and other cities have faced an increasing degradation of public infrastructure. The underutilization of funds for urban development, in particular, calls attention to the apathy of the state government in addressing the pressing needs of its growing urban population.
Rural Development: A Crisis of Progress
The Rural Development Department, tasked with improving infrastructure and living conditions in rural areas, has similarly struggled to allocate its funds effectively. Of the Rs. 25,400.05 crore allocated to the department, only Rs. 7,095.07 crore has been spent, leaving Rs. 2,704.58 crore untouched. With essential programs like the Mahatma Gandhi National Rural Employment Guarantee Scheme and Jal Jeevan Mission at the heart of rural welfare, this failure to spend directly impacts the lives of millions of people, especially in drought-prone and economically disadvantaged regions.
The department also failed to disburse Rs. 4,616.82 crore meant for rural development schemes such as rural roads, water reservoirs, and drinking water projects. These delays have prevented much-needed infrastructure improvements, exacerbating the challenges faced by rural communities. For a state that prides itself on agricultural production, the neglect of rural development is a glaring failure in governance.
Housing and Higher Education: Unspent Grants
The Housing Department has also demonstrated poor financial management, with a total of Rs. 1,098.04 crore of the Rs. 4,468.31 crore allocation left unspent. This is especially problematic in light of Karnataka’s pressing housing needs, with the government having committed to implementing the Pradhan Mantri Awas Yojana and other schemes aimed at providing affordable housing. Delays in these programs mean that many low-income families are still waiting for their homes, with little progress made toward meeting their housing needs.
Similarly, the Higher Education Department has struggled to utilize its allocated funds, with Rs. 1,086.07 crore left unspent out of Rs. 5,807.66 crore. While the government has released significant funds for the development of government colleges, polytechnics, and universities, the delay in utilizing these resources undermines the state’s educational aspirations, leaving institutions with unmet infrastructural and academic needs.
The Chief Minister’s Contradiction
Despite these glaring figures of underutilization, Chief Minister Siddaramaiah has claimed that 46 per cent of the budget allocation has been spent as of the end of October 2024. This claim stands in stark contrast to the official proceedings of the KDP meeting, which recorded a 35.41 per cent progress in budget allocation by the same period. This discrepancy raises serious questions about the transparency of the state government’s financial reporting and its ability to provide accurate information to the public.
The Chief Minister’s assertions appear to be a deliberate attempt to downplay the scale of the crisis and deflect attention from the poor financial governance exhibited by his administration. It is clear that the government is struggling to implement its budget effectively, leaving essential services and infrastructure projects at a standstill while crucial funds remain idle.
The Impact on Citizens
The real-world impact of this financial mismanagement is felt by the people of Karnataka. Delayed salaries for teachers, uncompleted infrastructure projects, stagnant health services, and stalled rural development schemes have left citizens frustrated and disillusioned. The government’s failure to utilize the funds at its disposal means that promises made to the people in the name of welfare, education, healthcare, and infrastructure development are not being fulfilled.
The gap between allocated funds and actual expenditure highlights the government’s inability to effectively manage its finances and address the needs of its citizens. As Karnataka struggles to move forward with its development agenda, the government must take immediate steps to address these inefficiencies, ensure the timely utilization of allocated funds, and prioritize the welfare of its people.
The failure of the Karnataka state government to utilize Rs. 29,884 crore in funds allocated for key developmental sectors is not a mere oversight—it is indicative of a systemic issue of financial mismanagement and a failure of governance at the highest levels. The public has every right to demand accountability from their elected representatives, who must be held responsible for this failure to deliver essential services and development.
It is time for the state government to take immediate action, rectify its financial mismanagement, and ensure that funds meant for the public welfare are used effectively and efficiently. Anything less would be a betrayal of the people’s trust and the state’s development goals.
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