Fund release delay hits Centre's schemes in Karnataka

The delay in release of grants from the union government for schemes sponsored by it has affected several welfare schemes in Karnataka, hurting its already stretched finances.

A recent review of such schemes by the state government identified 10 programmes in which release of grants from the Centre was lesser than the budgetary allocation.

The schemes include Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Integrated Child Development Scheme (ICDS) and National Health Mission (NHM).

While the Centre had allocated Rs 10,729 crore for these schemes for the 2020-21 financial year, it has released Rs 8,553 crore till date. An amount of Rs 2,175 crore - which is one-fifth of the total allocation - is yet to be released.

The lion’s share of these allocations - around 60% - was for MGNREGS. Owing to an increased demand for jobs in rural areas due to the migration caused by the Covid-induced lockdown, the Centre had increased allocations for the scheme in the middle of the fiscal.

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Of the Rs 6,445 crore allocated for MGNREGS, the Centre has released Rs 5,605 crore till date and Rs 840.95 crore is pending. Budgetary allocations of NHM were also not released in full despite the pandemic. While Rs 1,208.54 crore was allocated, Rs 1,076 crore was released till date.

For 2020-21, Rs 1,001.49 crore was budgeted by the Centre for ICDS and its supplementary nutrition programme. However, only Rs 680.63 crore is released.

Receiving less than half the allocation was the CSS for development of infrastructure facilities for the judiciary being implemented by the Public Works Department.

While the first scheme was promised an allocation of Rs 425.84 crore, only Rs 21.22 crore was released.

Reduction in the Centre’s share in several CSSs has also hit the state’s finances.

Reacting to a query on the issue following the review of CSSs, Primary and Secondary Education Minister Suresh Kumar said mid-day meals programme in schools was among the few schemes where the Centre’s share is reduced.

Apart from funds for CSSs, reduction in the release of GST devolution and GST compensation funds has also affected the state's finances.