Guarantee schemes: Verification alone may not save much for Karnataka’s exchequer

As the verification drive to ascertain the beneficiaries of guarantee schemes gets under way, it is not expected to bring down much of the financial burden on the State exchequer. Those in the know of financial matters in the State government say a broader rationalisation of benefits in implementing the targeted subsidy by changing the eligibility criteria would help the government save substantially.

The re-enrolment or verification for Gruha Lakshmi and Gruha Jyothi that together cost over ₹40,000 crore per annum is expected to reduce the overall burden by “at the most ₹1,000 crore annually”, according to government sources. “The base for the guarantees has come from Kutumba, which itself has emerged from ration card. We believe verification based on ration cards or voter’s ID might not have substantial difference,” sources pointed out.

Further, the government has not conducted data analysis also to ascertain the actual savings, sources added.

The State government has launched a drive to verify Gruha Jyothi beneficiaries from Wednesday while it is expected to soon ask Gruha Lakshmi beneficiaries to re-apply.

While the government was under pressure to revisit the guarantee schemes, the Comptroller and Auditor General’s (CAG) report has also revealed irregularities, especially in the Gruha Lakshmi scheme where money was allegedly going into accounts of dead beneficiaries, besides unverified beneficiaries. The quantum of these totalled to at least ₹225 crore.

It is learnt that the Finance Department had been seeking rationalisation of guarantees and had also made multiple presentations before the Cabinet during the term of former Chief Minister Siddaramaiah. “So far, there has been no serious discussion on how to rationalise the guarantee schemes. Decision was deferred. Many ideas have been floated, but nothing happened despite multiple presentations,” sources said.

Currently, the Gruha Lakshmi scheme is universal, and has been accessed by APL card holders also. Government employees, their families, GST payers, multiple members in families, and families earning upto ₹62,000 per month (₹7.5 lakh annual income) are benefiting from the scheme.

Eligibility criteria should be changed

Pointing at fears of El Nino and West Asia crisis having cascading effects on tax mobilisation in the State, sources said that the subsidy has to be targeted so that it is better utilised. “CAG query has been the same for better use of money.”

Of the many ideas floated for rationalisation of the schemes, restricting the monthly financial assistance of ₹2,000 under the Gruha Lakshmi scheme for BPL families is expected to save about ₹3,000 crore annually.

Arguments have also been made to restrict Gruha Jyothi benefits to BPL families. “Power is a scarce commodity and subsidy should not be given to those who can afford. Subsidy should be restricted to one connection per person. Aadhaar details are available, and those with multiple connections could be easily mapped. There could be substantial savings in this scheme too,” sources said.

Other ideas that had been discussed earlier included geographical restrictions on Shakti scheme. “The aim of Shakti was to integrate women with the workforce, providing mobility and independence. Travel distance can be limited to upto 50 km,” sources said.