10 central schemes for Karnataka got no funds in first quarter of current fiscal

Ten centrally-sponsored schemes on rural development, housing, agriculture and other crucial sectors have not received any money from the Centre in the first four months of the current fiscal, leaving them in a limbo as the Karnataka government, too, has not released its share of funds.

Projects under these schemes are worth Rs 3,890.59 crore, of which the Centre's share is Rs 2,410.81 crore, while state's share is Rs 1,479.78 crore.

According to data that Chief Minister Basavaraj Bommai reviewed at the Karnataka Development Programme (KDP) meeting earlier this week, schemes like the Swachh Bharat (Rural), PM Grameen Sadak Yojana (PMGSY), PM Awas Yojana, mechanising agriculture, National Mission for Sustainable Agriculture, National Food Security Scheme, Pradhan Mantri Krishi Sinchai Yojana (irrigation) and scholarships offered for students received no funds at the end of July.

Among the projects, the maximum allocation is for PMGSY. While the Centre has budgeted Rs 900 crore, the state allocated a matching grant of Rs 600 crore. The state, however, has spent the funds that were carried over from the previous fiscal.

Seven other schemes have reported zero progress during the fiscal, as they did not have any carryover funds from the last financial year nor were any grants released during the year.

Responding to media queries following the KDP meeting on Tuesday on paucity of funds for various projects, Bommai said funds were not released as allocations of the previous fiscal was yet to be utilised.

"Opening accounts of some schemes are being used to fund them. I have said that funds will be released quarterly based on expenditure," he said.

Earlier, the state government used to release even the Centre's share of funds in case the Centre delayed the grants, according to sources. But financial stress caused by the Covid-19 pandemic and decline in GST devolution and compensation funds had hurt the state.

The Finance Department has written to all departments asking them not to release the state's matching grants until the Centre released its share, sources added.