Congress government under fire again for diverting SC/ST welfare funds to guarantee schemes

The Karnataka government is under fire for proposing to divert ₹11,896 crore from SC/ST welfare funds to its guarantee schemes. Dalit groups and Opposition parties have criticised the move. A final decision is expected at the SC/ST Development Council meet on August 5.

Bengaluru: The Congress-led Karnataka government has once again come under fire for its controversial financial decisions, as it plans to divert funds earmarked for the Scheduled Castes Sub-Plan (SCSP) and Tribal Sub-Plan (TSP) towards its much-touted guarantee schemes. This move has sparked widespread outrage among Dalit organizations and opposition parties, who have accused the government of betraying the marginalised communities.

For the fiscal year 2025-26, a total of ₹42,017.51 crore has been allocated under the SCSP-TSP schemes. Of this, the government is reportedly considering diverting Rs 11,896.84 crore to fund its guarantee programmes. According to sources, this includes Rs 162 crore for the ‘Yuvanidhi’ unemployment scheme, Rs 7,438 crore for the ‘Gruha Lakshmi’ scheme, Rs 2,626 crore for ‘Gruha Jyothi’ (free electricity), Rs 1,537 crore for the ‘Shakti’ free bus travel scheme, and Rs 1,670 crore for the ‘Anna Bhagya’ free rice scheme.

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This is not the first time SCSP-TSP funds have been redirected. Similar diversions were made in the 2024-25 budget as well, with the government admitting in the Assembly that ₹9,797 crore from these welfare funds was used to finance guarantees.

The SC/ST Development Council meeting, chaired by Chief Minister Siddaramaiah, is scheduled for August 5, where a final decision on this controversial fund diversion is expected.

In defense of the government’s move, Social Welfare Minister H.C. Mahadevappa stated that the diversion of funds is within the legal framework of the SCSP-TSP Act. “The BJP’s threat to protest is surprising, considering they themselves misused ₹10,000 crore using Section 7D of the same Act by deeming it as expenditure for SC/ST development, including spending it in municipal corporations,” he claimed. “We have filed cases against them.”

Despite the justification, the decision is expected to stir significant political controversy, with opposition parties likely to escalate the matter in the upcoming Assembly session.