BENGALURU: Tension over diverting welfare funds meant for the SCs and STs has come to the fore at the pre-budget meetings Chief Minister Siddaramaiah held with SC and ST leaders.
The meetings followed Siddaramaiah’s recent interactions with Dalit legislators and ministers. Sources familiar with the deliberations indicated that the interactions were marked by an unease among sections of Dalit leaders over the alleged diversion of funds earmarked under the Scheduled Caste Sub-Plan (SCP) and Tribal Sub-Plan (TSP). These allocations are meant to be used exclusively for targeted welfare and development initiatives for SC/STs, but are said to have been tapped to support the government’s five flagship guarantees.
Community leaders argued that such reallocations dilute the intent of constitutionally guided welfare planning and called for “ring-fencing” of SCP-TSP funds to ensure they are spent only on schemes specifically designed for these groups. They argued that the government should allocate more funds to the Banjara, Bhovi and Ambedkar Nigams as it would directly benefit the community members. The state government rejected allegations of diversion, maintaining that the funds continue to benefit SC/ST households because a substantial proportion of beneficiaries under the guarantee programmes belong to these communities and amounts are being used in proportion only.
A senior official said the utilisation was in accordance with Rule 7C, which allows funds to be applied to schemes proportionate to the participation of SC beneficiaries. “If SC families are availing a scheme, using SCP resources for that component cannot be termed diversion,” he said. The controversy has triggered a debate within the ruling Congress.
Earlier at a Congress Legislative Party meeting, some Dalit legislators reportedly voiced a strong objection. One legislator said that while allocations could be revised transparently, “once funds are set aside for the community, they should not be rerouted”.
A senior minister defended the government, pointing out that Congress had earlier flagged diversion of nearly Rs 10,000 crore by the earlier BJP government.
“Here there is no diversion as under 7 C, it is seen only as utilisation aligned with the beneficiary share,” the minister said. Political observers note that the issue could become a sensitive point for the government as it balances the fiscal demands of its expansive welfare guarantees with the expectations of communities seeking dedicated, non-transferable allocations.
The chief minister met representatives of the Dalit Sangharsha Samithi (DSS) and other SC-ST stakeholders in Bengaluru, with discussions focusing on community-specific demands, including a proposal to establish a Buddha Vihar as a cultural and spiritual centre reflecting Buddhist heritage.