Karnataka: BJP blames Congress-led govt for financial mismanagement, accuses it of misusing SC, ST funds
June 4, 2026
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Home Bharat

Karnataka: BJP blames Congress-led govt for financial mismanagement, accuses it of misusing SC, ST funds

The Karnataka state government’s diversion of SCST funds to implement a guarantee scheme has sparked fierce condemnation from opposition parties. BJP leader R Ashok accused the state government of financial mismanagement, warning that such practices could lead to the state's bankruptcy

IndreshIndresh
Mar 11, 2025, 04:30 pm IST
in Bharat, Karnataka
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BJP workers and supporters at a protest challenging the Karnataka government’s handling of Scheduled Castes Sub Plan and Tribal Sub Plan funds

BJP workers and supporters at a protest challenging the Karnataka government’s handling of Scheduled Castes Sub Plan and Tribal Sub Plan funds

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In a significant political uproar, the opposition parties, led by the Bharatiya Janata Party (BJP), have accused the Siddaramaiah government of misusing funds meant for the Scheduled Caste Sub-Plan (SCSP) and the Tribal Sub-Plan (TSP) to finance five welfare guarantee schemes in Karnataka. This controversy has ignited a fierce debate about fiscal responsibility and the prioritisation of community welfare within the state.

The Siddaramaiah government has announced a budget allocation of approximately Rs 52,000 crore for various guarantee schemes for the fiscal year 2024-25. However, alarm bells have been raised over the fact that a large portion of these funds is reportedly being drawn from SCSP and TSP allocations, funds specifically earmarked for supporting the Dalit and Vanvasi communities, respectively. Critics argue that this practice undermines the very purpose of these essential funds and jeopardises the socio-economic development of marginalised groups.

According to the Karnataka Development Programme (KDP) monthly progress reports, up to January of this year, the government has released about Rs 8,094 crore from the SCSP and TSP funds for these guarantee schemes, out of which a staggering Rs 8,043.57 crore has already been spent. This accounts for roughly 20.21 per cent of the total SCSP and TSP allocations for the financial year, raising serious concerns about whether these funds are fulfilling their intended purpose.

Breakdown of Fund Utilisation

A detailed examination of the funds allocated for these guarantee schemes reveals a troubling pattern. From the SCSP grants, Rs 9,980.48 crore was initially designated, with Rs 5,746.63 crore released as of January. The report further shows that a sizable 35 per cent of total released SCSP funds is now being diverted to guarantee schemes.

Similarly, TSP grants allocated for guarantees have also been substantial. With Rs 4,301.72 crore earmarked for guarantees this year and Rs 2,347.57 crore already released, it is evident that 41 per cent of the total TSP fund distribution is now going towards these initiatives.

The specifics of the allocation detail how much funding has gone into each of the five guarantee schemes, stirring even further controversy

1. Griha Jyoti Scheme: Rs 1,770 crore allocated from SCSP; Rs 1,385 crore released, with Rs 815 crore allocated from TSP and Rs 630.85 crore released.

2. Anna Bhagya Scheme: Rs 1,539.18 crore from SCSP; Rs 678 crore released and Rs 648.41 crore from TSP with Rs 287 crore released.

3. Shakti Yojana: Rs 1,001 crore from SCSP; Rs 834 crore released and Rs 450.45 crore from TSP with Rs 375 crore released.

4. Griha Lakshmi Yojana: Rs 5,546.53 crore allocated from SCSP, of which Rs 2,818 crore has been released. TSP has allocated Rs 2,335.38 crore, with Rs 1,041 crore released.

5. Yuvanidhi Yojana: Rs 123.50 crore from SCSP with only Rs 30.88 crore released, alongside Rs 52 crore from TSP, of which Rs 13 crore has been released.

Political Repercussions

The opposition’s vehement protests centre around the notion that these financial manoeuvres not only misappropriate funds meant for vulnerable populations but also indicate a lack of governance accountability. The BJP has criticised the Congress-led government for failing to protect the interests of marginalised communities, asserting that diverting SCSP and TSP funds compromises initiatives aimed at upliftment and development.

Many community leaders and activists are voicing their concerns, stating that the funds designated for the SCSP and TSP are crucial for the socio-economic empowerment of Scheduled Castes and Scheduled Tribes. With the potential misallocation of these funds, they fear an increase in disparities rather than a resolution of long-standing inequities.

As the situation unfolds, citizens are left waiting for a prompt response from the government, while the opposition continues to demand a reconsideration of how welfare funds are utilised. The ramifications of this controversy could resonate throughout the political landscape, signalling a turning point for the government’s approach to funding and community welfare. This incident not only raises questions about transparency and fairness but also highlights the crucial need for stringent oversight of government spending—especially when it comes to vulnerable communities that depend on these allocations for their very survival and progress.

Government Accused of Bankruptcy as Bhima Lift Irrigation Project Faces Crisis

In a shocking turn of events, the Bhima Lift Irrigation Project, which was initiated with the noble goal of providing comprehensive irrigation to 60,000 acres of farmland in the Kalaburagi region using the water from the Bhima River, has reportedly plunged into a state of disarray. The Irrigation Department is now confronted with a mounting crisis, struggling to pay its electricity bills due to a severe lack of funds, a situation that raises serious questions about the financial management of the state government.

The Bhima Lift Irrigation Corporation Limited, based in Afzalpur Division, has not paid any electricity bills since the last Congress government came to power. Shockingly, the outstanding amount owed to the electricity provider, GESCOM, stands at a staggering Rs 5 crore 52 lakh. This figure has become emblematic of the state’s broader financial troubles, triggering frustrations among farmers and local residents who depend on these irrigation systems for their livelihoods.

Reports indicate that despite repeated notices issued to the Irrigation Department officials by GESCOM regarding the overdue payments, there has been little action taken to settle the bills. GESCOM has now threatened to cut off the electricity supply to the irrigation facilities if payment is not made promptly. However, deep-rooted allegations suggest that Irrigation Department officials are turning a blind eye to the situation, exhibiting a disconcerting lack of accountability.

In a further display of the apparent financial malaise afflicting the government, GESCOM officials, who rigorously pursue unpaid bills from the public, seem to be treating the Irrigation Department’s debts differently. While they impose strict deadlines for individuals and businesses failing to pay their electricity bills, the same urgency does not appear to be applied when it comes to government departments. This disparity raises questions about the application of laws and financial obligations, leading the public to wonder if there are two sets of rules—one for ordinary citizens and another for the government itself.

Details of the outstanding bills reveal the alarming state of financial mismanagement within the irrigation project. The Karnataka Irrigation Corporation Limited’s records indicate that the Bhima Lift Irrigation Project Division owes Rs 4,37,55,182 for the Balundagi Jack Well, Rs. 1,14,42,079 for the Allagi (B) Jack Well, and Rs 30,324 for the Sonna Dam, accumulating to a total outstanding amount of Rs 5,52,27,585. Despite numerous appeals made to the project executive engineer to address these overdue payments, the situation remains unresolved.

Furthermore, the ongoing fiscal crisis is exacerbated by the state government’s five guarantee programs, which are reportedly draining funds and contributing to the financial shortfall within the irrigation department. Many citizens believe that because these guarantees consume the majority of the available funding, essential projects, including irrigation initiatives, are being neglected. Farmers have expressed urgent demands for the government to prioritise funding for irrigation projects to ensure their survival and stability.

In recent developments, it has been reported that the Bhima Lift Irrigation Project managed to make a partial payment of Rs 80 lakh towards the electricity bill. However, more than Rs 4 crore 50 lakh in outstanding payments remain, with assurances from officials like Santosh Kumar Sajjan, Executive Engineer of the Bhima Lift Irrigation Corporation Limited, that the remaining debt will be addressed in phases. Nagaraj Kusama, Assistant Executive Engineer of GESCOM, confirmed that the electricity bill had not been paid for over two to three years, creating a considerable backlog.

 

 

Topics: SC ST Funds MisuseKarnataka Guarantee SchemesScheduled Caste FundsTribal Sub PlanKarnatakaSiddaramaiah GovernmentFinancial mismanagement
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