Women could remain Karnataka Chief Minister Siddaramaiah’s biggest cheerleaders if a report on his government’s five guarantees is any indication. The government has spent around ₹96,000 crore on the subsidies since May 2023, which has begun paying happy dividends. Two schemes targeted at women—Gruha Lakshmi, a cash transfer of ₹2,000 to women family heads, and Shakti, providing free bus travel—have had the biggest impact, uplifting women’s economic condition and households’ well-being. Free mobility has boosted access to education, jobs and healthcare, and women’s participation in the workforce is up 23 percent. The survey of 6,300 women by an independent policy consultant along with Lokniti-CSDS, Bangalore University, Tumkur University, and Indus Action was carried out across 15 districts over a year.
It appears the Congress has hit upon the right formula by putting money into the hands of women, who are using it for their families: 91 percent spent it on food, 85 percent on healthcare, 52 percent on education, and 27 percent on repaying loans. The Shakti scheme saves women up to ₹1,000 a week, which is ploughed back into the home budget. Women claimed to have gained dignity, as they travelled independently for work and leisure. Karnataka’s expenditure till now has indeed been heavy—`95,450 crore for the five guarantees. However, the schemes have brought considerable succour to a post-Covid society in financial distress.
Yet, the spend has led to a persistent debate on whether the government has compromised on development and ignored the urban middle class, which also suffered losses during the pandemic. The BJP has accused the Congress of making “unreal promises”. According to the Comptroller and Auditor General, Karnataka’s net market borrowing of ₹63,000 crore in 2023-24 was ₹37,000 crore higher than the previous year’s, when the BJP was in power. While the number is critical, several economists also hold that the government has alleviated people’s financial burden and kickstarted local economies. The report admits that cash infusion has “reduced economic disparities and supported human capital development”, but says that without rationalisation, the subsidies will drain the economy. The government has acknowledged this and launched an exercise to weed out ineligible beneficiaries. However, it remains steadfast in the claim that fiscal restraint cannot come at the cost of social development.