Tamil Nadu to bring new legislation for SC-ST sub-plan

“While the allocation seems adequate, most of the funds are spent towards implementation of existing general schemes like the pension scheme.
Tamil Nadu Finance Minister Palanivel Thiaga Rajan presents the State Budget for 2023-24. (Photo | Express)
Tamil Nadu Finance Minister Palanivel Thiaga Rajan presents the State Budget for 2023-24. (Photo | Express)

CHENNAI: The Tamil Nadu Government is set to bring a new legislation for adequate allocation and effective implementation of the Scheduled Castes and Tribal sub plans. Finance Minister Palanivel Thiaga Rajan announced in the budget session on Monday that the draft bill will be introduced in the next assembly session after a consultation with stakeholders. 

While the allocation under the sub plans have been in line with the 19.8% of the state plan outlay as stipulated in the SSCP guidelines, spending towards exclusive development of the targeted communities and underutilisation of funds have been an issue in Tamil Nadu.

“While the allocation seems adequate, most of the funds are spent towards existing general schemes like the pension scheme. Without legislation in place, the implementation could not be strengthened but this may change now along with also increasing stakeholder accountability,” said N Dhayalan, who is a part of the state level coalition for strengthening the SC/ST sub plan. 

With the announcement on Monday, Tamil Nadu will follow Andhra Pradesh, Telangana, Karnataka and Rajasthan that already have a legislation in place for the planning, allocation and utilisation of scheduled caste and scheduled tribes developmental funds. In 2013, a draft bill was prepared by the Ministry of Social Justice and Empowerment that sought to prevent diversion of funds on general schemes but it was not passed. 

According to experts who have been calling for a legislation for over a decade now, while a united Andhra Pradesh was the first to enact a legislation, Telangana’s would be a good path to follow for Tamil Nadu. Telangana, in 2017, brought into effect a new sub-plan act that did away with the ten-year limit for the implementation with scope for priority projects that go towards building an income and dignity for dalit families. Under the Dalit Bandhu scheme, funded under the sub plan, Telangana offers a one-time assistance of Rs 10 lakhs per SC family. 

“Telangana introduced a new set of schemes that looks at asset building and to promote entrepreneurship. Since the 10 lakhs is given as a grant and not as a loan, the families are able to avoid the hassles of collateral and other securities required for a loan. The families who received the grant, individually or along with their relatives are able to start substantial businesses,” said VA Rameshnathan, convenor, National Coalition on SCP/TSP Legislation- Tamil Nadu. He added that the draft bill should be available in the public domain for feedback.

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