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Karnataka Cabinet Row Erupts Over Alleged Diversion of SCSP/TSP Funds

Cabinet erupts as ministers battle diversion of welfare funds to guarantees.

The Karnataka cabinet meeting on October 30, 2025, descended into acrimony when Social Welfare Minister Dr. H.C. Mahadevappa confronted Energy Minister K.J. George over the redirection of Scheduled Castes Sub-Plan (SCSP) and Tribal Sub-Plan (TSP) funds toward guarantee schemes. Chaired by Chief Minister Siddaramaiah, the session exposed deep rifts in fiscal priorities, with Dr. Mahadevappa decrying the neglect of essential welfare initiatives for marginalized communities in favor of broader populist programs like Gruha Jyothi.

Dr. Mahadevappa zeroed in on delays in the Ganga Kalyana Yojana, which energizes borewells for SC/ST households to ensure water access in drought-prone areas. He noted that corporations had allocated Rs 75,000 per borewell, yet funding shortages—blamed on SCSP/TSP diversions—had halted progress. "Where is the money proportional to the communities' population?" he demanded, invoking the 2013 Act mandating protected allocations based on demographic shares.

Minister George defended the stance, arguing that rising costs necessitated higher unit funding for borewell projects. He highlighted Gruha Jyothi's reach to over 56 lakh SC/ST beneficiaries but acknowledged resource strains. The exchange grew heated, with Dr. Mahadevappa threatening to walk out, prompting swift intervention from Siddaramaiah to avert escalation.

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The Chief Minister, who has previously justified diversions as indirect welfare boosters, mediated a resolution. The energy department agreed to submit a revised proposal to social welfare, detailing enhanced costs and timelines for Ganga Kalyana implementation. This addresses immediate concerns while aligning with the state's Rs 42,017 crore SCSP/TSP budget for 2025-26.

The spat highlights ongoing scrutiny over Rs 11,896 crore in reported diversions, drawing fire from opposition BJP and Dalit groups. As Karnataka balances its five guarantees with equity mandates, such tensions could intensify fiscal debates ahead.

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