Utilization of Funds for Scheduled Castes Welfare

In the financial year 2024-25, about one-fourth of the funds allocated for the welfare of Scheduled Castes (SCs) remained unutilized, marking the lowest utilization in a decade.

• ₹1.66 lakh crore were allocated by 39 central ministries and departments under the Developmental Action Plan for Scheduled Castes (DAPSC).
• ₹1.24 lakh crore or 74.74% of the allocated budget was utilized.
• 18 out of 39 ministries spent less than 90% of their allocated funds.

Historically, about 85-90% of allocated funds under DAPSC have been utilized, except during the pandemic years when utilization fell to 76.12% in 2019-20 and 75.41% in 2020-21. The lowest utilization rate was 59.42% in 2014-15.

Historical Context and Evolution of SCP/SCSP

The Special Component Plan (SCP) for SCs was introduced in 1979 to support poor SC families through welfare and developmental schemes.

• Central ministries were required to earmark 2-20% of their budget for SC welfare schemes.
• The nomenclature changed to Scheduled Castes Sub Plan (SCSP) in 2006, then to Allocation for Welfare of Scheduled Castes in 2017-18, and finally to DAPSC.
• The number of ministries earmarking funds increased from 14 to the current 39, covering 233 schemes.

Challenges in Fund Utilization

• Ministries face challenges in finding targeted schemes, leading to budget reductions at revised estimates stages.
• Some ministries like coal, telecommunications, and MSMEs have struggled in identifying appropriate schemes.

Efforts to revamp the scheme revealed ministries were allocating funds to generic schemes, which wasn't meeting DAPSC's core intent. NITI Aayog suggested a central fund for direct transfers to SC households earning less than ₹5,000 monthly, but this hasn't materialized.

For 2024-25, the low utilization was attributed to the model code of conduct during parliamentary elections, delaying scheme sanctions for at least two months.