Karnataka: Congress-led government faces allegations of misuse of SC/ST funds for Pancha guarantee schemes
July 25, 2026
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Home Politics

Karnataka: Congress-led government faces allegations of misuse of SC/ST funds for Pancha guarantee schemes

The government has utilised a total of Rs 6,542 crore from SC/ST grants until November for the five guarantee schemes in the year 2024-25

IndreshIndresh
Dec 6, 2024, 07:30 pm IST
in Politics, Bharat, Karnataka
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Bengaluru: The state government’s ambitious Pancha Guarantee Schemes, aimed at ensuring various welfare benefits for the masses, have been marred by serious allegations of financial mismanagement and diversion of funds meant for Scheduled Castes (SC) and Scheduled Tribes (ST). As the government pushes ahead with these schemes, significant portions of the SC and ST grants are being diverted to meet the funding requirements, raising concerns over the proper allocation and utilization of resources meant for marginalised communities.

According to recent reports, the state government has used a staggering Rs 6,542 crore from the SC/ST grants to fund the Pancha Guarantee Schemes, which include the Griha Lakshmi, Annabhagya, and other welfare programs. This has raised alarms among opposition parties, who have accused the government of misappropriating funds allocated to the SC and ST communities in violation of established norms.

Massive Allocation for Pancha Guarantee Schemes

For the financial year 2024-25, the Karnataka government has allocated a whopping Rs 52,000 crore for the implementation of the Pancha Guarantee Schemes. This figure is expected to reach around Rs 56,000 crore by the end of the fiscal year. The state claims that the schemes are benefiting approximately 98 per cent of the intended recipients. However, the implementation has not been without its challenges.

Reports indicate that there has been a significant delay in the disbursement of funds, especially for the Griha Lakshmi and Annabhagya Direct Benefit Transfer (DBT) schemes, which have seen delays of two to three months in payments to beneficiaries. The money intended for these beneficiaries is being released only after adjustments with other funds, including those earmarked for the SC/ST communities. This delay, combined with the redirection of funds, has led to growing concerns about the priorities of the state government.

SC and ST Funds Diverted: Opposition Outcry

Despite fierce opposition from political parties, especially those representing Dalit and tribal communities, the state government has continued to draw funds from the Scheduled Caste Sub-Plan (SCSP) and Tribal Sub-Plan (TSP) to finance these guarantee schemes. This diversion of funds, critics argue, is not only illegal but also unjust, as these resources were specifically earmarked for the upliftment of the SC and ST communities.

As per the Karnataka Development Program (KDP) monthly progress figures, by November 2024, the state government had utilized Rs 6,542 crore out of the total Rs 14,280 crore allocated for SCSP and TSP. Of this, Rs 9,980 crore was earmarked under SCSP, and Rs 4,650 crore of this amount has already been spent. Additionally, Rs 4,300 crore was allocated under the TSP, of which Rs 1,891 crore has been spent so far. This means that by November, 46 per cent of the total funds allocated for the welfare of SC and ST communities under these schemes have been diverted to the Pancha Guarantee initiatives.

Detailed Breakdown of Fund Utilisation

SC (Scheduled Caste) Fund Allocation and Expenditure:

Griha Jyothi Scheme

· Total Allocation: ₹1,770 crore

· Release: ₹1,092 crore

· Expenditure: ₹1,092 crore

· Annabhagya Scheme

· Total Allocation: ₹1,539 crore

· Release: Rs 561 crore

· Expenditure: Rs 550 crore

· Shakti Yojana

· Total Allocation: Rs 1,001 crore

· Release: Rs 667 crore

· Expenditure: Rs 667 crore

· Yuvanidhi Scheme

· Total Allocation: ₹123.50 crore

· Release: Rs 30.88 crore

· Expenditure: Rs 14.40 crore

·  Griha Lakshmi Scheme:

· Total Allocation: Rs 5,546.53 crore

· Release: Rs 2,363 crore

· Expenditure: Rs 2,327 crore

ST (Scheduled Tribe) Fund Allocation and Expenditure

Griha Jyothi Scheme

· Total Allocation: Rs 815 crore

· Release: Rs 497.85 crore

· Expenditure: Rs 497.85 crore

Shakti Yojana

· Total Allocation: Rs 450.45 crore

· Release: Rs 300 crore

· Expenditure: Rs 300 crore

· Griha Lakshmi Scheme:

· Total Allocation: Rs 2,335 crore

·  Release: Rs 863.61 crore

·  Expenditure: Rs 863 crore

· Annabhagya Scheme

· Total Allocation: Rs 648 crore

· Release: Rs 237.76 crore

· Expenditure: Rs 231 crore

· Yuvanidhi Scheme

· Total Allocation: Rs 52 crore

·Release: Rs 0 crore

· Expenditure: Rs 0 crore

Questions of Accountability and Transparency

The diversion of funds meant for the SC and ST communities has raised several questions about the transparency and accountability of the state government’s expenditure. Critics argue that while the Pancha Guarantee Schemes may provide short-term benefits, the long-term welfare of the SC and ST communities could be compromised by such financial mismanagement. The funds allocated for the upliftment of marginalized groups should be used specifically for their development, education, healthcare, and other essential services, not diverted to fund broader welfare schemes.

The opposition parties have demanded an independent investigation into the misuse of funds, calling for greater oversight in the allocation and utilization of SCSP and TSP resources. They have also urged the government to release a clear, detailed report on how these funds are being spent, and whether the funds diverted from the SC and ST welfare schemes are being accounted for correctly.

The Road Ahead: A Call for Action

With the state government continuing to defend its actions, saying that the Pancha Guarantee Schemes are benefiting a large portion of the population, it remains to be seen how the controversy over the diversion of SC and ST funds will unfold. While the state government insists that the schemes are reaching their targets, the opposition is firm in its stance that the funds allocated for the SC and ST communities should not be used for other purposes.

The matter has become a point of contention in Karnataka politics, with increasing demands for transparency and accountability in government spending. The state government must now decide whether to address the concerns raised by critics and make the necessary adjustments, or continue with its current approach and face further scrutiny from both the opposition and the public.

Topics: Congress-led governmentPancha Guarantee Schemes
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