Central funds misused by Congress govt in Karnataka: Vijayendra

Bengaluru: The BJP on Saturday alleged that the Siddaramaiah-led government had misused central grants, diverting Rs 1,323.96 crore released under special assistance to the state for capital investment (2025-26) to other purposes.

Addressing a news conference, BJP state president B Y Vijayendra said, “The central grants are meant for specific schemes and are released stage-wise upon submission of progress reports and utilisation certificates (UCs). However, the state government has not disbursed funds for minor irrigation (for Krishna Bhagya Jala Nigam Ltd and Karnataka Neeravari Nigam Limited). The Finance Department has withheld amounts and pressured the department to submit fabricated UCs to secure subsequent installments.”

Vijayendra referred documents (dated July 1, 2025) on the loan-cum-interest-free special assistance for minor irrigation projects and demanded a response from the chief minister - also the Finance minister - on the alleged fake UCs.

Citing the Valmiki Corporation scam, Vijayendra said diversion of crores of funds to Telangana through multiple bank accounts was not possible without the consent of the chief minister. He also sought “clarity” on the fate of Rs 5,000 crore earmarked for the Gruha Lakshmi scheme.

Alleging that the Ahinda leader Siddaramaiah had done little for the development of the backward classes, Vijayendra said, “The funding for caste-based development corporations especially of the backward classes and Ahinda communities has been drastically reduced by the Siddaramaiah government.  The Congress is only using the Ahinda communities as its votebank.”

Flagging pending payments of Rs 65 crore under Anugraha Yojana (financial relief to shepherds on the death of sheep or goats), he said, “CM belonging to the ‘Halumata’ (shepherd) has helped the community little. I demand allocation of Rs 1,000 crore for the Ahinda communities in the upcoming state Budget.”

Slamming the Congress government for celebrating 1,000 days in office, Vijayendra accused the government of betraying the poor, farmers, women and youth while indulging in “thousand lies” to mark the
milestone.

“Congress had failed to fill 2.85 lakh vacant government posts, implement the Old Pension Scheme for employees recruited after 2006, enhance honorariums of anganwadi, ASHA and midday meal workers, and provide hostel facilities to 1.41 lakh backward class students,” said Vijayendra who also questioned how the government justified the expenditure of Rs 170 crore and Rs 450 crore on caste surveys.