The decision of the Karnataka government to divert funds from the Schedule Caste/Schedule Tribe Sub-Plans to fund the five guarantees of the Congress party has kicked off a storm with the Bharatiya Janata Party (BJP) calling it an anti-Dalit move. The BJP on Friday, August 4, held a protest at Freedom Park and Dalit organisations went into a huddle to oppose it, even as no SC/ST MLAs raised any objections with Chief Minister Siddaramaiah during a recently held meeting about the use of the sub-plan amount for the guarantee schemes.
According to the information provided by the Social Welfare Department, the allocation for 2023-24 for the sub-plans is Rs 34,294 crore. Out of this, the government has announced that it will be using Rs 11, 144 crore for implementing the five guarantee schemes. Out of this, Rs 5,075 crore will be allocated for the Gruha Lakshmi scheme, Rs 2,779 crore for the Anna Bhagya scheme, Rs 2,410 crore for the Gruha Jyothi scheme, Rs 812 crore for the Shakti scheme and Rs 67.50 crore for the Yuva Nidhi scheme.
A fortnight ago, the SC/ST organisations met with Chief Minister Siddaramaiah and pleaded with him and the Social Welfare Department not to divert the funds for the guarantee schemes. But the developments over the last few days have now spurred the organisations to convene a meeting to see how they can proceed forward. “We are against it. We were told that they will obtain the data on the SC/ST beneficiaries utilising these schemes and the money will be used only for them. The excess money, we were assured, would be returned to the sub-plan fund. But who will monitor and be vigilant about this spending? Are you going to ask a woman on a bus if she is a Holeya or Madiga? How are you going to track the caste of a person who is getting free electricity?” questioned Nagaraj, a state convenor of Dalit Sangharsha Samithi (DSS).
The funds are being used und,er section 7(c) of The Karnataka Scheduled Castes Sub-Plan and Tribal Sub-Plan (Planning, Allocation and Utilization of Financial Resources) Act, 2013. Karnataka is one of the few states where an Act was passed in the legislature, under pressure from activists who were unhappy with the government dipping into the special funds for SC/ST development to finance other projects meant for the general population. While the law was designed to prevent the diversion or misuse of the sub-plan funds, Dalit and Adivasi activists criticised the government for inserting Clause 7(c) which they said defeated the very purpose of the legislation. The clause allows for funds to be used for general purposes where “general social sector schemes, that is education, health, women and child, labour, physically handicapped included in the Sub-Plans, benefiting the Scheduled Castes or Scheduled Tribes individuals or the Scheduled Castes or Scheduled Tribes households, along with others..”
This move by the Congress government has provided a lot of fodder for the BJP, which in turn, was heavily criticised by the Congress earlier. The contention was about earmarking funds as ‘deemed expenditure’ to be used for general purposes under 7(d) for non-divisible infrastructure works like roads, dams etc. This meant that funds from the SC/ST funds could be allocated for general purposes for large projects, on the presumption that it would be used not just by the general population, but also by the SC/ST beneficiaries.
Notwithstanding the criticism his own government came under for diverting funds from SC/ST sub-plan allocation for bulky projects, former Chief Minister Basavaraj Bommai said it was a disaster that the funds had been diverted. “This is a huge injustice to the SC/ST communities. The money could have gone to housing, education, Ganga Kalyana projects, scholarships and hostels. This is a great injustice by Congress on Dalits,” he declared. Pointing out that it was the Congress which brought in 7(d) allowing expenditure for general use, he said that it was Siddaramaiah who had allowed the use of money for general purposes. “How can you make speeches saying you are pro-Dalit?” he questioned.
The Congress government has defended its decision by pointing out that the spending is markedly different from the earlier spending which was considered ‘deemed expenditure. “Those were for bulky infrastructure projects like roads, dams and buildings which are indivisible and for which there was no accountability at all in terms of how much it benefitted Scheduled Castes (SC) and Scheduled Tribes (ST). With the five guarantees, there are a lot of SC and ST families which will benefit from the amount,” an official remarked.
Each department has to earmark 24% of the funds for schemes that will directly benefit SC/STs. The argument for the Congress is that these funds have been unspent or spent on projects that supposedly benefit SC/STs but in reality, have not. Many of the contracts, especially for the bulky projects ended up benefitting the contractors more than the intended beneficiaries, the official argued. A special sub-plan component intends to target communities that require more than general schemes. These vulnerable groups are meant to benefit from general schemes and also special schemes for which funds are provided from the special component.
Stung by the criticism, a note by the Social Welfare Department said that the money used from the sub-plans diverted towards the guarantee schemes would be used only for SC/ST beneficiaries, and data would be obtained about the SC/ST beneficiaries enrolled under the schemes. The government also said that nodal agencies would be instructed to obtain this information.
In a significant move, the Dalit Sangharsh Samithi (DSS), which had been split into several factions came together in December 2022 and vowed to fight the BJP in the May 2023 Assembly elections. Even with the announcement of an increase in reservation and internal reservation by the BJP, the DSS pulled their weight behind the Congress.
The Congress government which came to power in May 2023, promptly announced during the state budget that it was dropping 7(d) in the interest of social justice, and stopping the allocation of SC/ST sub-plan money for indivisible general purpose large projects. But now, Dalit activists argue, it has done the same thing by seeking shelter under another similar clause. It was after a long battle that we even got an Act for using these funds appropriately, said Mavalli Shankar, one of the state convenors of DSS. “These funds were meant to be used for comprehensive development and empowerment of SC/ST communities and the Chief Minister had promised that these funds would not be used for any other purpose and they even removed the 7(d) clause. But now, they are using these funds for guarantee schemes. I cannot understand the logic,” he said.
Shankar pointed out that even to this day, the SC/ST Development Corporation had thousands of applications for loans and monetary help. “The rate of unemployment among our communities is so high. Our students do not have hostel facilities and the plight of women is pathetic. When this whole Act was brought about to ensure social justice, how right is it to use the money for general purposes,” he questioned.
He blamed the bureaucracy for seeking shelter from other provisions of the Act. “Trust them (bureaucrats) to find a way to work around to get the money. Yes, they are using a provision that is present in the Act, but this is defeating the very spirit of the Act,” he said.
What the organising members of the DSS agree is that they will be opposing the Congress government’s decision and will be holding a meeting on Saturday to decide how to proceed. “We have worked together for Congress victory. We are aware of the constraints of the government in terms of meeting their financial obligations and we also know that this budget is very important for the Congress. But we have decided to oppose this move and stage a protest. We will not change our minds about that,” Nagaraj added.
A similar situation can be seen in Tamil Nadu, where the current DMK government has come under criticism for diverting funds under the special component plan for SCs towards Magalir Urimai Thogai Scheme (financial scheme for women). The National SC/ST Commission has sought a reply from the Tamil Nadu government to look into the allegations that the funds have been misused. Unlike Karnataka and Telangana, Tamil Nadu does not have a specific Act governing the use of funds allocated for the exclusive welfare of SC/STs.