<p>Karnataka today presents a striking economic contradiction. It boasts the highest per capita income in the country at Rs 2,04,605, far above the national average of Rs 1,14,710. It is India’s fourth-largest economy, the second-largest contributor to the goods and services tax (GST), and one of the fastest-growing large states, recording a robust gross state domestic product growth of 12.8% in 2024–25. </p><p>Multidimensional poverty has fallen sharply from 16.55% in 2013–14 to just 5.67% in 2025. Yet, paradoxically, Karnataka also has the highest number of below poverty line (BPL) cards in India. </p><p>As Revenue Minister Krishna Byre Gowda admitted on the floor of the Assembly, an astonishing 73–75% of Karnataka’s population holds BPL cards — an astronomically abnormal figure for a high-income state. This is not merely an administrative anomaly; it is evidence of systemic failure. BPL cards are meant for households earning less than Rs 1.2 lakh annually. </p><p>Instead, the state has 4.44 crore people categorised under priority households, many of whom are demonstrably ineligible. The Centre has already flagged 7.76 lakh suspicious beneficiaries — income tax payers, company directors, individuals with GST turnover above Rs 25 lakh, and even those holding ration cards in other states.</p>.<p>The consequences of this are severe. When the affluent corner welfare benefits, the most vulnerable lose access to essential support. Every kilogram of subsidised rice drawn by an ineligible household under Anna Bhagya reduces what could have gone to a malnourished family. The state’s welfare bill — over Rs 56,000 crore annually for schemes such as Gruha Lakshmi and Anna Bhagya — becomes fiscally unsustainable when stretched to cover those who do not need assistance. These funds could instead have been channelled into long-term investments in schools, hospitals and infrastructure.</p>.<p>The government’s ongoing clean-up drive, which has already cancelled or converted 2.34 lakh to 4.9 lakh cards, is both necessary and overdue. Since Aadhaar seeding alone cannot validate income, the government must move towards technology-led cross-verification with income tax records, land databases, vehicle registrations, and government payrolls. This course correction is not about reducing welfare; it is about restoring its moral and fiscal legitimacy. </p><p>A prosperous state cannot afford a poverty database built on falsehoods. Every bogus card weakens the social contract, drains public money, and steals from those who truly need the state’s support. The state should choose between subsidising comfort and prioritising genuine poverty alleviation. Unfortunately, vote-bank politics repeatedly overrides administrative integrity, turning social welfare into a tool of patronage rather than a ladder out of poverty.</p>
<p>Karnataka today presents a striking economic contradiction. It boasts the highest per capita income in the country at Rs 2,04,605, far above the national average of Rs 1,14,710. It is India’s fourth-largest economy, the second-largest contributor to the goods and services tax (GST), and one of the fastest-growing large states, recording a robust gross state domestic product growth of 12.8% in 2024–25. </p><p>Multidimensional poverty has fallen sharply from 16.55% in 2013–14 to just 5.67% in 2025. Yet, paradoxically, Karnataka also has the highest number of below poverty line (BPL) cards in India. </p><p>As Revenue Minister Krishna Byre Gowda admitted on the floor of the Assembly, an astonishing 73–75% of Karnataka’s population holds BPL cards — an astronomically abnormal figure for a high-income state. This is not merely an administrative anomaly; it is evidence of systemic failure. BPL cards are meant for households earning less than Rs 1.2 lakh annually. </p><p>Instead, the state has 4.44 crore people categorised under priority households, many of whom are demonstrably ineligible. The Centre has already flagged 7.76 lakh suspicious beneficiaries — income tax payers, company directors, individuals with GST turnover above Rs 25 lakh, and even those holding ration cards in other states.</p>.<p>The consequences of this are severe. When the affluent corner welfare benefits, the most vulnerable lose access to essential support. Every kilogram of subsidised rice drawn by an ineligible household under Anna Bhagya reduces what could have gone to a malnourished family. The state’s welfare bill — over Rs 56,000 crore annually for schemes such as Gruha Lakshmi and Anna Bhagya — becomes fiscally unsustainable when stretched to cover those who do not need assistance. These funds could instead have been channelled into long-term investments in schools, hospitals and infrastructure.</p>.<p>The government’s ongoing clean-up drive, which has already cancelled or converted 2.34 lakh to 4.9 lakh cards, is both necessary and overdue. Since Aadhaar seeding alone cannot validate income, the government must move towards technology-led cross-verification with income tax records, land databases, vehicle registrations, and government payrolls. This course correction is not about reducing welfare; it is about restoring its moral and fiscal legitimacy. </p><p>A prosperous state cannot afford a poverty database built on falsehoods. Every bogus card weakens the social contract, drains public money, and steals from those who truly need the state’s support. The state should choose between subsidising comfort and prioritising genuine poverty alleviation. Unfortunately, vote-bank politics repeatedly overrides administrative integrity, turning social welfare into a tool of patronage rather than a ladder out of poverty.</p>
