Bengaluru: Facing sustained criticism from opposition parties over the rising expenditure on welfare guarantees, the Karnataka government is considering reducing the financial outlay of its flagship schemes by identifying and removing ineligible beneficiaries, official sources said.
The Congress government rolled out five major guarantee schemes after assuming office in 2023. In the supplementary budget that year, Rs 35,410 crore was allocated for eight months. The allocation rose to Rs 56,000 crore in 2024–25 and approximately Rs 51,000 crore in the current financial year 2025–26.
Sources indicated that the government is exploring ways to rationalise expenditure in the upcoming budget by tightening eligibility norms and plugging leakages.
Smart Card Plan for Shakti Scheme
Under the Shakti Yojana, which offers free bus travel to women, nearly 70–75 lakh women avail the benefit daily. However, instances of fake documents and misuse, including men allegedly travelling on free tickets, have prompted corrective measures.
Transport Minister Ramalinga Reddy recently stated that a smart card system will be introduced to ensure that only eligible women benefit from the scheme.
Annabhagya, Grihalakshmi Under Scrutiny
Under the Annabhagya scheme, food grains are being distributed to around 4.21 crore beneficiaries. Officials have found that nearly 20 percent of beneficiaries were ineligible, leading to the cancellation of around four lakh ration cards. To curb costs, the government has also replaced the earlier 5 kg rice provision with pulses, sugar, salt and oil in certain cases.
The Grihalakshmi scheme, which provides Rs 2,000 monthly assistance to women heads of families, has also come under review. Verification reportedly revealed payments made to ineligible recipients, including income tax payers and accounts linked to deceased beneficiaries.
Officials are now considering introducing a life certificate mechanism, similar to pension systems, to prevent payments to deceased individuals and save public funds.
Irregularities in Other Schemes
Under Yuva Nidhi, which is designed to provide financial assistance to unemployed graduates for two years, some beneficiaries have allegedly continued receiving funds beyond the stipulated period. Concerns have also been raised over irregularities in the Griha Jyoti free electricity scheme.
A senior government official said multiple proposals are under discussion to rationalise allocations.
“Although some ineligible beneficiaries have been removed, some are being included. No final decision has been taken yet. We will get clarity after a couple of rounds of discussions,” the official said.
The move signals a possible recalibration of Karnataka’s high-profile welfare guarantees amid fiscal pressures and administrative scrutiny.
