K’taka Minister Calls for Limiting Guarantee Schemes to Poor, Citing Development Concerns: Report

A senior minister from Karnataka has urged the Congress leadership in New Delhi to consider revising the state’s guarantee schemes by restricting them to benefit only the poor, in order to ease the financial burden on the state treasury, according to a news report published in DH.

The minister met with Congress President Mallikarjun Kharge and Karnataka Congress General Secretary Randeep Surjewala to discuss concerns raised by numerous legislators about the shortage of funds for development projects following the implementation of these guarantee schemes, the newspaper reported citing party sources.

The minister reportedly suggested that limiting the guarantee schemes to below poverty line (BPL) cardholders could save the state exchequer approximately Rs 25,000 crore annually. This significant savings could then be redirected towards essential developmental initiatives, such as infrastructure and public services. The minister also pointed to the party’s lackluster performance in the recent Lok Sabha elections, suggesting that these schemes might not be delivering the expected electoral gains.

Additionally, the senior leader highlighted the growing dissatisfaction among state legislators, who are facing criticism from constituents over delays in key development projects, including road construction and water supply improvements.

Chief Minister Siddaramaiah, who recently marked the one-year anniversary of the launch of some of these schemes, acknowledged in a meeting in New Delhi that he was aware of the growing calls from MLAs and other leaders to reconsider the scope of the guarantee schemes. However, Siddaramaiah ruled out completely halting the initiatives, emphasizing the government’s commitment to prioritizing the welfare of the poor while also exploring ways to reduce the schemes’ financial impact.

In the state budget presented earlier this year, Siddaramaiah, who also holds the finance portfolio, allocated ₹1,20,373 crore for welfare programs, with an impressive 43 percent (₹52,000 crore) dedicated to the five flagship guarantee schemes: Shakti, Gruhajyoti, Gruha Lakshmi, Yuvanidhi, and Anna Bhagya.