Rs 7K-cr SC/ST funds 'diverted' for infra works in Karnataka

A whopping Rs 7,885.32 crore has been used on drinking water projects, drainage repair, irrigation and other civil works under a provision successive governments have used to ‘divert’ funds meant for SC/ST welfare, official data shows.

These are funds under the Scheduled Castes Sub-Plan and Tribal Sub-Plan (SCSP-TSP), which mandates spending on the welfare of these social groups.

Between 2018 and 2021, the departments of irrigation, urban development and rural development & panchayat raj (RDPR) received SCSP-TSP funds for their projects, angering lawmakers across party lines.

The Karnataka Scheduled Castes Sub-Plan and Tribal Sub-Plan (Planning, Allocation and Utilisation of Financial Resources) Act requires the government to spend 24.1% of its total budget on SC/ST welfare: 17.15% for SCs and 6.95% for STs.

The problematic part of the law is Section 7(D) that deals with 'deemed expenditure'. When it comes to infrastructure works, a portion of the project cost shall be 'deemed' to have been provided for the SC/ST sub-plans; in other words, spent on SC/ST welfare.

For example, the government's flagship Jal Jeevan Mission (JJM) will get Rs 3,307 crore from SC/ST sub-plans this fiscal. But authorities point out even SC/ST households will get tap water connections under JJM.

Sources, however, say there is no clarity on how much should be ‘deemed expenditure’.

“If we provide drinking water or roads using the sub-plan money, it will be of use to everyone,” Water Resources Minister Govind Karjol told DH, suggesting that even SC/STs utilise infrastructure provided under ‘deemed expenditure’.

But Karjol is aware that the ‘deemed expenditure’ provision is problematic and opposed by BJP’s own SC/ST MLAs P Rajeev, NY Gopalakrishna, MP Kumaraswamy and others.

“During Covid-19, the finance department allowed ‘deemed expenditure’ up to 50% and it went up to 100%. I agree there was confusion, but there won’t be any ‘deemed expenditure’ in this financial year,” Karjol said.

Chief Minister Basavaraj Bommai has set aside Rs 28,234 crore under the sub-plans this fiscal.

“How can it be that an entire flyover is built using the sub-plan money and then say that even SC/STs use it,” Congress MLA Priyank Kharge, a former social welfare minister, asked. “Instead of ‘deemed expenditure’, the government should identify infrastructure that can be directly linked to SC/ST habitations.”

Social Welfare Minister Kota Srinivas Poojary could not be reached for comments.

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