Explained: The row over SCP/TSP funds in Karnataka

What are SCP/TSP funds?

The funds are allocated for the welfare of SC, ST communities, considered among the most backward in the state. Prior to 2013, there was no law in existence in Karnataka to ensure allocation of funds to these groups proportional to their population.

In 2013, the Congress government under Siddaramaiah enacted the Karnataka Scheduled Castes Sub-Plan and Tribal-Sub Plan (Planning, Allocation and Utilization of Financial Resources) Act. Rules for the law were notified in 2017 with Karnataka becoming the second state to have such an Act.

The law requires the government to spend 24.1 per cent of its total budget on SC/ST welfare with 17.15 per cent for SCs and 6.95 per cent for STs.

What is the quantum of funds allocated under SCP/TSP in Karnataka?

The allocation for SCP/TSP in Karnataka has almost tripled from Rs 15,894.66 crore in 2014-15 to Rs 42,018 crore in the recently presented 2025-26 budget.

Save for 2014-15, when expenditure of the allocation was around 81 per cent, government data shows that more than 92 per cent of the funds allocated were spent till 2023-24 – the maximum being in 2023-24 when 97.23 per cent of the funds were spent. The funds, according to the government, are used in 470 schemes implemented by 35 departments.

What were the complaints on the implementation of SCP/TSP in the past?

The norms for allocation of funds were subject to a dispute during the erstwhile BJP government. While various sections of the 2013 Act provided for the usage of funds for individual development, colony development and expenditure in the social sector for the SC/ST communities, section 7(D) allowed the government to use it for ‘deemed expenditure’.

Due to the section, there were allegations that the erstwhile BJP government was using the SCP/TSP funds for infrastructure projects, thereby defeating the purpose of the funds. Following demands from Dalit groups, the Congress government scrapped 7(D) after it came to power in 2023.

What is the current row?

The combined BJP-JD(S) opposition has alleged that the SCP/TSP funds were being used to fund guarantee schemes. The coalition partners had also staged a protest during the start of the budget session against the Siddaramaiah government.

Prior to this, the state government had constituted a drive to ascertain caste-wise data of beneficiaries for its guarantee schemes so that allocations can be made under SCP/TSP. The government has also shared data in the Legislative Council of spending Rs 13,434 crore of the Rs 39,121 crore allocated under SCP/TSP for guarantee schemes. As per the data, Rs 7,438 crore was spent for Gruha Lakshmi, Rs 2,626 crore for Gruha Jyothi, Rs 1,671 crore for Anna Bhagya, Rs 1,537 crore for Shakti and Rs 162 crore for Yuva Nidhi.

To counter the BJP’s allegations, the Congress has highlighted that SCP/TSP funds were largely spent as ‘deemed expenditure’ during BJP rule due to which SC/ST communities were denied benefits despite the existence of a law on these funds in the state. However, the saffron party has maintained that using funds for guarantee schemes “compromised on the basic intent” of the SCP/TSP Act.