BENGALURU: The Siddaramaiah-led Congress government came to power in Karnataka in 2023, riding high on the promise of five “guarantee schemes,” which it projected as a safety net for the poor and middle class. Among these, the Shakti Scheme — offering free bus travel for women — was showcased as a flagship initiative symbolising social justice and women’s empowerment. While the scheme has undoubtedly benefited lakhs of women commuters, fresh disclosures in the legislature have triggered a serious political and financial debate: are these guarantees pushing the state towards fiscal bankruptcy?
Official records presented to the Legislative Council reveal that the state government has accumulated arrears amounting to thousands of crores under the Shakti Scheme alone. In response to a question raised by JD(S) member Govindaraj, the Transport Minister admitted that the government owes over Rs 4,000 crore to Karnataka’s four state-run transport corporations over the last two and a half years. This revelation has armed the opposition with ammunition to accuse the Congress government of fiscal mismanagement and empty populism.
The data show that in the 2023–24 financial year, the government owed Rs 1,180.62 crore to transport corporations for implementing the Shakti Scheme. KSRTC alone owed Rs 452.62 crore, while BMTC owed Rs 205.43 crore. The North West Karnataka Road Transport Corporation was due Rs 283.91 crore, and the Kalyana Karnataka Road Transport Corporation Rs 238.66 crore.
The situation showed little improvement in 2024–25, with total arrears still hovering at Rs 1,170.45 crore. KSRTC’s dues rose to Rs 495.80 crore, BMTC’s stood at Rs 194.78 crore, North West Karnataka Transport Corporation at Rs 275.55 crore, and Kalyana Karnataka Transport Corporation at Rs 204.32 crore.
Alarmingly, the arrears ballooned further in 2025–26. As of the end of November, unpaid dues touched Rs 1,655.40 crore in a single year. KSRTC alone is awaiting Rs 631.73 crore; BMTC Rs 310.60 crore; North West Karnataka Transport Corporation Rs 428.64 crore; and Kalyana Karnataka Transport Corporation Rs 284.43 crore.
In total, the government retained Rs 4,006.47 crore from these four corporations over 2.5 years. KSRTC accounts for Rs 1,580.15 crore of this, followed by North West Karnataka Transport Corporation with Rs 988.10 crore, BMTC with Rs 710.81 crore, and Kalyana Karnataka Transport Corporation with Rs 727.41 crore.
The opposition BJP and JD(S) have seized upon these figures to accuse the Congress government of pushing Karnataka towards financial insolvency. They argue that while the government aggressively promotes its guarantee schemes, it fails to back them with timely financial support, effectively shifting the burden to public sector undertakings. Transport corporations, already struggling with operational costs, staff salaries, fuel prices and maintenance expenses, are now being forced to absorb the financial shock, critics allege.
Opposition leaders claim the Shakti Scheme has become an “unfunded mandate,” with the government taking political credit while losses are borne silently by transport corporations. They warn that continued delays in releasing funds could cripple public transport services, hinder fleet expansion, delay salary payments to employees, and ultimately affect commuters.
The issue gains further significance in the backdrop of reported arrears under another flagship scheme, Gruhalakshmi, adding to concerns about the state’s cash flow and fiscal discipline. Opposition leaders argue that the government’s financial stress is becoming evident through mounting dues, delayed payments and increased borrowings.
